Retail EBO IBM Store Integration Framework Components and

Retail EBO IBM Store Integration Framework Components and Business Value – Internal Education Jerri Traflet – Retail on demand EBO, Solutions Executive Beth Ann Vaughn – SW Solution Sales Exec. , WW Retail Industry Mark Indermaur – RSS Emerging Offerings Team Lead © 2004 IBM Corporation

Store IBM Integration Software Framework Group Discussion agenda » What is IBM Store Integration Framework? • Overview • Business Function • Components, Packaging and Pricing Solutions using SIF • Personal Shopping Assistant • Guided Selling Solution • RFID – Smart Shelving Q&A 2 © 2004 IBM Corporation

Store IBM Integration Software Framework Group Infrastructure Sooner or later, it matters 3 © 2004 IBM Corporation

Store IBM Integration Software Framework Group IBM On Demand Operating Environment for retail Enterprise application integration Web channel integration Business integration Enterprise Web Store Integration Framework New POS touch points Store Integration Framework RFID readers Point of sale Electronic shelf labels New “anywhere" access points Electronic scales 4 PDAs Electronic signs Digital multimedia displays Self checkout personal shopping devices Kiosks On demand store solutions © 2004 IBM Corporation

Store IBM Integration Software Framework Group Delivering Retail Business Function The Next Generation Store Platform Store Integration Framework Integrate/Protect existing store applications Secure Autonomic Environment for Retail Extends Enterprise to Store Device Management Rapid deployment of new solutions Effective Management at the “Edge” 5 © 2004 IBM Corporation

Enterprise Store IBM Integration Software Framework Group § IBM Tivoli Enterprise Console ® § IBM Tivoli Configuration Manager § IBM Tivoli Monitoring Business integration § IBM Web. Sphere Remote Server Central Site § WBI Transaction Log Processor § Rational Application Developer for Web. Sphere Software Retail Business Objects Store Integration Framework Samples and Examples Web Application Device Access Business Partner and ISV solution offerings Store Integration Framework RFID readers RFID Extension Electronic shelf labels filtering and monitoring Point of sale Electronic signs Self checkout Digital Surveillance Digital multimedia displays Digital Media Extension Data Movement Retail Data Extension POS Extension Store Integrator Data Integration Facility personal shopping devices IBM Web. Sphere Remote Server Web. Sphere Application Server Network Deployment (ND), Web. Sphere MQ, DB 2 Workgroups, Tivoli Management and Monitoring Agents Software distribution packages Remote Management Agent PDAs Kiosks Sample and examples for distributing, managing and monitoring solutions on Web. Sphere Application Server Operating Systems (Windows, Linux/(IRES), Solaris, HP-UX, AIX ) Intelligent Scales Hardware Platform (Blade Server, x. Series or equivalent) 6 © 2004 IBM Corporation

Store IBM Integration Software Framework Group Open Standards Support – On Demand Operating Environment Store Integration Framework 7 © 2004 IBM Corporation

Store IBM Integration Software Framework Group IBM Web. Sphere Remote Server § Base Components: § Capabilities: – IBM Web. Sphere® Application Server Network Deployment Version 5. 1. 1 – IBM Web. Sphere MQ Version 5. 3. 02 – IBM DB 2® Workgroups 8. 1 Fixpack 4 – IBM Tivoli® Monitoring, Version 5. 1. 2 – J 2 EE application server platform – Configuration flexibility – Resilient database – Assured message delivery – Tivoli monitoring and management • IBM Tivoli Monitoring Component OS Supported: Windows 2000/2003 Services, Version 5. 1. 1 Server, SUSE Linux (IRES Preferred) • IBM Tivoli Resource Manager, Version 4. 2. 1 HW Supported: x. Series, Blades • IBM Tivoli Monitoring for Web infrastructure Center, or equivalent. • IBM Tivoli Monitoring for business integration General availability: 4 th Quarter • IBM Tivoli Monitoring for databases § § § 8 © 2004 IBM Corporation

Store IBM Integration Software Framework Group IBM Web. Sphere Remote Server Systems Management Accelerator § Components: § Capabilities: – Software distribution packages, including product install images • Packages for base installation that can be modified to distribute additional components or software – Samples and examples to help distribute, manage and monitor solutions on Web. Sphere Application Server – Remote Management Agent • OSGi support for subsequent releases • Device management and monitoring – Remote installation support – Systems management components for JMX instrumentation of any device or software solution § OS Supported: Windows 2000 Server, SUSE Linux § HW Supported: x. Series, Blades Center, or equivalent § General availability: 4 th Quarter Retail Store Solutions 9 © 2004 IBM Corporation

Store IBM Integration Software Framework Group Distributed infrastructure patterns One server in store, standby server is also a client POS system Backup servers In enterprise (farm, rack or running on IBM ^ In-store server runs on end user/POS system No servers in store z. Series server) Virtual on demand F Real A B One box is both server and POS terminal E In-store level tiers 2 and 3 Backup box is both server and POS terminal D C Enterprise level tier 1 Classic three-tiered pattern, two or more servers in store Legend Normal traffic Backup traffic High availability Potential high availability Potential load balance 10 © 2004 IBM Corporation

Store IBM Integration Software Framework Group IBM Web. Sphere Remote Server Pricing § Retail Outlet Special Bid Highlights – 70 -79% for 100 stores or more – 80 -87% for 500 stores or more – Pilots approved at roll-out prices § Announced Price of new Hard bundle – Exciting Price for the retail store – Low, with limits on additional internal discounting – Available prior to general announcement through Special Bid – 3 chargeable components • Web. Sphere Remote Retail Server (store only) • Web. Sphere Remote Retail Server Systems Management Accelerator (store only) • Remote Server Central Site (Enterprise) § Resellers allowed through Passport Advantage 11 © 2004 IBM Corporation

Store IBM Integration Software Framework Group RFID Extension § RFID Easy Start capabilities § Availability: Services asset today – RFID event routing and messaging – RFID event filtering and aggregation – Upstream management module – Network management – System monitoring – Software management – Java™ 2 Platform, Micro Edition execution environment – XML services – RFID reader/printerface – Security components for reader authentication – Event buffer 12 © 2004 IBM Corporation

Store IBM Integration Software Framework Group Retail Data Extension – Services Asset § Components: – Data integration is based on a Web. Sphere Business Integration Adapter and Web. Sphere Business Integration broker – Data transfer is based on an OSGi implementation § Capabilities – Manage and move POS data from the store to the enterprise • Web. Sphere Business Integration TLog Processor • Bulk data transfer based on OSGi standards 13 © 2004 IBM Corporation

Store IBM Integration Software Framework Group Digital Media Extension – Services Asset § Components: – RCI Integration Layer developed by the Digital Media EBO Team. – An Abstraction layer to integrate multiple digital touch points to ease content management to and from multiple digital devices. 14 § Capabilities – Deliver this abstraction layer to more easily integrate devices used by application providers for Dynamic Digital Merchandising and Digital Surveillance © 2004 IBM Corporation

Store IBM Integration Software Framework Group POS Extension § Components: – Store Integrator • 4690 POS Integration (IBM 4680 -4690 Supermarket Application, IBM General Sales Application, IBM Sure. POS™ ACE) • Standard access to POS logic • Extension of POS business logic with Java (IBM Application Extension Facility) • Virtual POS terminal (Client Session Server) • Graphical User Interface • Standard POS Interface § Capabilities: – Provides applications access to POS data and business logic § General availability: Both are available today – Version 2 Store Integrator - March 2005 – Version 2 Data Integration Facility – June 2005 – Data Integration Facility • Data movement to the enterprise • Follows IXRetail POS log standards • Comes with 4690 TLog to IXRetail adapter 15 © 2004 IBM Corporation

Store IBM Integration Software Framework Group POS Extension Pricing § Store Integrator – List Price $1200 per store, $200 per POS device • Sold through AAS § Data Integration Facility – List Price $500 per store • Sold through Passport Advantage 16 © 2004 IBM Corporation

Store IBM Integration Software Framework Group Discussion agenda What is IBM Store Integration Framework? • Overview • Business Function • Components, Packaging and Pricing » Solutions using SIF • Personal Shopping Assistant • Guided Selling Solution • In Store Inventory Management Q&A 17 © 2004 IBM Corporation

Store IBM Integration Software Framework Group IBM strategy—On Demand Business for retail Consumers Employees Operations Revolutionize the store Empower teams Focus the supply chain » » » Motivate shoppers Create “instant experts” Streamline store operations Satisfy customers Increase productivity Enable seamless trade Operate on demand 18 © 2004 IBM Corporation

Store IBM Integration Software Framework Group Guided shopping—personal shopping assistant Capabilities: • • • Enable personalized-list-driven shopping trips Allow scan as you go Provide price verification (promotion-accurate) Deliver tailored cross- and up-sell promotions Offer pre-order deli, bakery and other services Supply product information (e. g. , health/food) Benefits: • • 19 Rapid ROI Increase basket size Boost margins Increase shopping frequency, spend © 2004 IBM Corporation

Store IBM Integration Software Framework Group Personal Shopping Assistant Implementation Replicate favorites, rich data Server Controller Price Personal Shopping Web Application Extension Facility Add item Suspend 1 session per webpad Send TLOG, update favorites MQe Application Extension Facility Terminal Sales Virtual Session Data Integration Facility Sales Support Application Windows / Linux Resume Scan loyalty card Location data Scan item Finish shopping 4690 OS Pay Complete Transaction Browser Embedded OS Web Tablet 20 Scan loyalty card Terminal / Self Checkout © 2004 IBM Corporation

Store IBM Integration Software Framework Group Guided selling for complex products Capabilities: • Works in self-service or service scenarios across device types: – Answer difficult questions about products instantly and accurately – Help consumers narrow choices – Create instant experts on complex products – Achieve greater inventory and service visibility Benefits: • Higher customer satisfaction due to simplified decision making • Increase sales from cross- and up-sells • Improve associate effectiveness at a reduced cost • Optimize inventory based on availability 21 © 2004 IBM Corporation

Store IBM Integration Software Framework Group Guided Selling Implementation Guided Selling Web application Access Store’s Guided Selling application Business Integration Send & transform store-level prices MQe Browser Data Integration Facility Sales Support Application 22 Windows / Linux 4690 OS Kiosk / Handheld PDA Controller © 2004 IBM Corporation

Store IBM Integration Software Framework Group In Store Inventory management Capabilities: • Streamline out-of-stock management • Automate inventory location awareness • Automate inventory updates • Bolster shrink and loss prevention • Automate expiration management • Improve planogram compliance Benefits: • Reduced manual labor costs • Increased profits through improved inventory levels and product availability 23 © 2004 IBM Corporation

Store IBM Integration Software Framework Group In-Store Inventory Implementation Controller MQe Alert store associate Transform to IXRetail and Send Update inventory Inventory Application Data Integration Facility Sales Support Application 4690 OS Transaction complete Terminal Sales 24 Windows / Linux 4690 OS Server Terminal © 2004 IBM Corporation

Store IBM Integration Software Framework Group Photo kiosk Capabilities – Provide seamless transaction integration with store POS – Complete transactions at the point of service Benefits – Improve customer satisfaction through alternative checkout option – Decrease back-room workload through TLog consolidation 25 © 2004 IBM Corporation

Store IBM Integration Software Framework Group Photo Kiosk Implementation Pay at kiosk Print photos POS Create POS transaction Kiosk Application Extension Facility 1 session per kiosk Application Extension Facility Terminal Sales Virtual Session Data Integration Facility Sales Support Application 26 Windows / Linux 4690 OS Kiosk Controller © 2004 IBM Corporation

Store IBM Integration Software Framework Group Discussion agenda What is IBM Store Integration Framework? • Overview • Business Function • Components and Packaging Solutions using SIF • Personal Shopping Assistant • Guided Selling Solution • RFID – Smart Shelving » Q&A 27 © 2004 IBM Corporation

Store IBM Integration Software Framework Group Call to Action § Understand your clients business direction and vision § Pain Points §Strengths and Weaknesses §Vision for the next generation store § Work with the Retail EBO, SWG, RSS to §Brief Customers on the IBM Vision of the next generation store § Understand solutions available on the Store Integration Framework § Request available resources to engage with your client §Discuss whether your client is a good pilot candidate? § Brief key customers prior to the Announce and NRF. 28 © 2004 IBM Corporation

Store IBM Integration Software Framework Group For more information Contact: Jerri Traflet, Solutions Exec Retail EBO, traflet@us. ibm. com, 919 -301 -5432 Beth Ann Vaughn, SW Solutions Sales Exec, WW Retail Industry bav@us. ibm. com, 248 -552 -4684 Mark Indermaur, SW Emerging Technologies Team Lead, RSS indermaur@us. ibm. com, 919 -301 -5208 To learn more, please visit: ibm. com/industries/retail/store 29 © 2004 IBM Corporation