IBM Software Group IBM middleware technology revs up
® IBM Software Group IBM middleware technology revs up the automotive industry Attract and retain more profitable customers NOTE to IBM Business Partner: Add Business Partner logo here © 2003 IBM Corporation
IBM Software Group NOTE: Add Business Partner logo here Agenda 1 Automotive industry in the on demand era 2 Automotive industry challenges and dynamics 3 Middleware matters 4 Solution recommendations and customer experiences 5 Next steps 6
IBM Software Group “Squeeze model” 2004 Strategic forces New on demand business § Changing role of suppliers “An on demand business is an enterprise § Increased responsibility and need for design and development collaboration and integration whose business processes — integrated end-to-end across the company and with § Slow growth in auto sales propped by zero-percent financing key partners, suppliers and customers — can respond with speed to any customer demand, market opportunity or external threat. ” § Shift toward fewer OEMs and fewer suppliers § Expectations of continuous improvement and cost cutting – the “squeeze model” — Sam Palmisano, October 2003 NOTE: Add Business Partner value proposition 7
IBM Software Group Do these challenges sound familiar? Would you like to be able to better understand customers and equip channels with customer history and insights? Is regulatory compliance, such as reporting to NHTSA for consumer safety and product quality, difficult? Is your accounts payable not in synch with terms of procurement? Are your costs of labor and overhead, and percentage of scrap and rework too high? Can you provide timely and accurate forecasting to reduce inventory costs, number of stock-outs and increase inventory turns? 8
IBM Software Group On demand business needs on demand solutions Midsize automotive 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 IBM has solutions specifically for midsize automotive businesses at a price lower than the competition. Open standards IBM middleware leverages existing IT investments, no rip and replace. 9
IBM Software Group What we’re hearing Top business priorities of automotive industry IT executives § Improve collaboration in design and production § Decrease production cost by improving communication across the organization and supply chain § Improve ability to understand customers and equip channels with customer history and insight to issues that affect safety regulations, etc. § Reduce time to market in response to changing business landscape § Optimize inventory levels and cost-effective inventory management “The most frequently cited business issue driving IT investment is better utilization of data throughout the organization. From information on production planning and shop-floor scheduling to the increasingly robust set of data collected on customer demographics and order preferences, the need to collect, analyze, and share information that supports decision-making processes is an absolute priority. ” — AMR Research 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 automotive landscape Currents of change § Increased investments resulting from customer insight § Cost-effective production processes becoming a competitive differentiator § Growth through new product development continues “Improved decision making and the demands of a global marketplace drive application and IT investment. Infrastructure and application investments will be highly prioritized as a means to deliver information more efficiently throughout the organization. ” — AMR Research 12
IBM Software Group You have challenges. IBM and IBM Business Partners have solutions. Challenge Solution Better understand customers and equip channels with customer history and insight. Customer Service Portal Decrease production cost by improving communication across organization and supply chain Production, Operations, and Logistics solution Improve collaboration in design and production Product Life Cycle Management (PLM) “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 automotive 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 automotive firms want — at an affordable price § Reliable, industry-specific software solutions that create effective real-time linkages with customers and suppliers § Increased profitability through reduced costs, improved efficiency, stronger customer relationships, and integrated processes The automotive supplier segment is changing § Fewer OEMs—resulting in fewer customers § Auto supplier consolidation due to fewer customers and constant price pressure 15
IBM Software Group Why middleware matters Midsize automotive 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 problem § 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 ‘Inventory visibility and event management are up and coming focuses in automotive. ” -Jeff Ryan Tigris Consulting Source: Supply Chain Management Review NOTE: “A Clearer View of Automotive Visibility” Business Partner customer quote? 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. ” NOTE: Business Partner customer quote? 17
IBM Software Group You have challenges, we have solutions Challenge Solution Key Benefits Improve customer relationships Customer Service Portal § Better understand customers and provide channels with customer history and insights § Manage warrantee and service contracts § Provide service documentation via a customer portal § Predict failures and service needs Decrease production costs by managing, distributing and collaborating on design work, and by integrating factory information throughout the supply chain Production, Operations and Logistics § Enable enterprise automation across business § Streamline operations Improve time to market while increasing product introduction success rates and product quality • Improve time to market Product Life Cycle Management (PLM) • Increase success rate of product intro, quality • Reduce costs and design time NOTE: 18
IBM Software Group How can you improve your customer relationships? IBM Express Customer Service Portal IBM Components § Web. Sphere Application Server - Express § Web. Sphere Portal Express § Better understand customers and provide channels with customer history and insights § Web. Sphere Studio § Manage warrantee and service contracts § DB 2 UDB Express § Provide service documentation via a customer portal § DB 2 Content Manager Express § Predict failures and service needs § DB 2 Content Manager Entry Offering § Tivoli Access Manager for e-business § Rational Suite § DB 2 Records Manager § DB 2 Common. Store Entry Offering Manage warrantee and service contracts 19
IBM SMB references follow each solution area. You can use these or substitute your own. Software Group down the street. If you choose to use your own, you can use th he best reference. IBM is the business format. See “Backup” section for a blank template. Sime Darby Hong Kong Ltd. : Enhanced customer service Challenge Provide better customer service. Company wanted a Web-based customer relationship management (CRM) solution that could be integrated with its existing systems. Solution IBM Web. Sphere Commerce Professional Edition Version 5 used for customer order and transaction management Value § Reduced call center costs by 50% § Quicker development time, as well as maintenance cost savings § Improved communication with customers via a single interface § Increased efficiency as a result of moving from a paper-based manual system to an automated Web-based one 20
IBM Software Group How can you cut production costs and integrate factory information? IBM Express Production, Operations and Logistics solution Production, Operations and Logistics IBM Components § Web. Sphere Application Server § Web. Sphere Everyplace Server Enables enterprise automation across accounting and financials, materials and capacity management, human resources, payroll and industry-specific functions for streamlined operations across business § Tivoli Monitoring for Applications § Rational Suite § Web. Sphere Studio On demand parts ordering and order tracking 21
IBM Software Group Hindustan Motors: Extended global ERP system Challenge Value HM’s Power Plant Division wanted to extend its enterprise resource planning (ERP) applications to suppliers and large international customers to streamline business processes and reduce costs. § 66% savings in ERP development time § Significant reduction in the cost of Visual Basic client licenses § 15% reduction in inventory costs Solution IBM Web. Sphere solutions to develop and host applications that link Web to the ERP system and allow online transaction processing “We are committed to use … OS/400 running our in-house ERP, Web Application Server and HTTP environments. ” — Mr. S. Appan, CIO, Hindustan Motors Power Plant Division 22
IBM Software Group How can you improve product introduction success rates and product quality? Product Life Cycle Management (PLM) Product Life Cycle Management IBM Components § Web. Sphere Application Server § Web. Sphere Studio § Improve time to market § DB 2 Content Manager Express § Increase product introduction success rates and product quality § DB 2 Content Manager Entry Offering § Reduce costs through reuse of parts, drawings and documents § Lotus Instant Messaging and Web Conferencing § Reduce engineering design time and accelerate document retrieval § Rational Suite and Web. Sphere Studio § DB 2 Common. Store Entry Offering § Tivoli Access Manager for e-business § Improve communication within the company and with suppliers Improve time to market 23
IBM Software Group Thomas Built Buses: Gains in productivity and collaboration Challenge The existing product life cycle management (PLM) application could not readily integrate with its enterprise resource planning (ERP) and other manufacturing applications. Solution Hub-and-spoke architecture strategy featuring IBM Web. Sphere Business Integration Version 4. 2 Value § Improved productivity and collaboration § Ability to access and send information to its applications in real time § Suppliers can see information about requirements, changes, forecasts and shipments “The amazing part about Web. Sphere is how well it enables us to tackle any problem or issue with the transference of data between our diametrically opposed environments. ” — Pat Erickson, CIO, Thomas Built Buses 24
IBM Software Group Express Middleware can modernize your infrastructure § Improve customer loyalty, revenue and profit § Decrease production costs by managing, distributing and collaborating on design work and by integrating factory information throughout the supply chain § Improve time to market, as well as increase product introduction success rates and product quality Benefits of IBM Express Middleware: § Gain deeper understanding of customers. § Rapidly and cost effectively connect with large population of suppliers and partners. § Synchronize product design and engineering collaboration. § Improve the software design process. NOTE: § Optimize business results by enhancing system information. you wish, industry mergeregulatory contentrequirements. above with § Comply If with multiple Business Partner local automotive solutions 25
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 26
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. . 27 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 28
IBM Software Group Why IBM? Experience counts for midsize automotive 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 include 91 of the top 100 global companies in 2003. 450 K+ companies rely on IBM DB 2 Information Management solutions. 29
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. ” – Mr. Source, IBM Express is affordably priced Experience really counts § Business Partner experience, local background, etc…. . 30
IBM Software Group Business Partner application or service goes here Expand on the Business Partner local automotive solutions or applications Business Partner application § XXXXX Business Partner application IBM and Business Partner components § Placeholder § XXXXXXX 31
IBM Software Group IBM "continued its long time lead of this market, “ IDC, June 2003 Why IBM? Market leadership §Application Deployment Platform Software Market 2002 Share* Leading industry analysts acknowledge IBM market share dominance Source: Wintergreen Research Application Integration License Revenue 300 IBM 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. 32
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 33
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 34
IBM Software Group Award-winning Business Partner Applications here The more local the award the better Any local civic clubs or organization? 35
IBM Software Group NOTE: Any local press headlines? Articles about the BP? Why IBM? We’re 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 January 2, 2004 36
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) 37
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