® ibm software group © 2007 ibm corporation websphere commerce b2b business models

®

IBM Software Group

© 2007 IBM Corporation

WebSphere Commerce B2B Business Models


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Market Message

Business Models

WebSphere Commerce B2B solution provides widest range of out-of-the-box Business Models to support all possible way to interact with customers using a

single platformBusiness Processes to reduce total cost of doing business and improve

customer/partner satisfaction by automating LOB processes

Business Processes

Electronics Industrial Equipment Telecom

Industry Plays

WebSphere Commerce Solution Strategy


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WebSphere Commerce B2B solution offers out-of-the-box support for wide range of business models and processes

MarketingCatalog / Product

Information

Partner/Channel

Relationship

Sales & Operations

Service & Support

WebSphere Commerce Platform

Target-to-Engage

Recruit-to-Monitor

Source-to-Merchandise

Quote-to-Cash

Request-to-Resolve

Simple B2B Business Models Complex

LOB Business Processes/Activities

B2B Direct DistributorHosted

PartnersValue Chain

WebSphere Commerce B2B Solution Framework



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MarketingCatalog / Product

Information

Partner/Channel

Relationship

Sales & Operations

Service & Support

WebSphere Commerce Platform

Target-to-Engage

Recruit-to-Monitor

Source-to-Merchandise

Quote-to-Cash

Request-to-Resolve

Simple B2B Business Models Complex

LOB Business Processes/Activities


PartnersValue Chain


WebSphere Commerce B2B Solution Framework


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B2B Direct

Scenario Single seller selling directly to customers or

businesses

Manufacturers selling directly to customers by eliminating the channel (e.g. ibm.com)

Manufacturers selling production goods to another business

Retailers selling non-production goods to business organizations (e.g. Staples Link)

Challenges Managing unique contract for each organization

Support for hierarchical roles that govern access and authority

Operating multiple individual sites for multiple buyer organization

Business CustomerManufacturer,

Retailer

Reseller, Dealer

Consumer

B2B Direct Selling

Enterprise Accounts

Direct to customer

Direct to business


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B2B Direct – WebSphere Commerce Capabilities

Catalog Management

Contracts

Member Management

Extended Sites

Key WebSphere Commerce Capabilities

Multiple catalog hierarchies Product assortments Customized and contract-driven catalog view

Contract-based pricing and policies Multiple contracts per customer Contract modeling tools for business managers

Configurable, granular Business Policies Hierarchical roles govern access and authority Integrated workflow

Individual, branded stores for each B2B customer Multiple storefronts on a single instance

Manages over 1 million products

Customer Examples*

Customized, contract-driven catalog and pricing

Buyer sites with roles-based pricing and approval authority

Thousands of buyers sites customized for individual orgs

*May not run this specific biz model


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Staples Supporting Diverse Contractual Relationships

Challenge

Supporting multiple customers buying under multiple contracts

Individual buyers have differing levels of purchase authority

Track site usage and online sales rates

Solution

10,000+ buying organizations each see contract-specific pricing and policies

Built-in approval workflow facilitates purchase authorization across multiple users at different organizational levels

BenefitsOver $1Billion (70%) of total B2B sales

driven through site

Site usage analysis enables Staples to continually enhance search engine performance

Automated support for diverse policies, contracts, buyer roles on a single platform

"This past year alone, 86 percent of the new customers we acquired use StaplesLink for doing business with us” - Lisa Hamblet, VP, B2B e-commerce, Staples


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Distributor (Brokerage model)

Scenario Value-added bridge between suppliers and

customers

Multiple manufacturers selling to hundreds of resellers via single distributor

Challenges Streamline information delivery and transaction

along the value chain

Integrate with suppliers’ and resellers’ existing systems

Selling through Distributor

Manufacturers

Distributor

Resellers


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Distributor model – WebSphere Commerce Capabilities

Guided Selling

RFQ

Order Management

Collaboration &

Workspaces


Parametric Search (drill down on attributes) Sales Assistance (Q&A dialog) Side-by-side Comparison

Solicit quotes for goods & services from interest list Create contract or create order Workflow for create, modify, approve, and submit

Single source of order; integration with backend Order Splitting, ATP and Routing Transaction visibility across the channel

Document sharing; Project management Threaded discussions Instant messaging

Assisted Selling and configuration enhances ability

to sell complex solutions

Customer Examples*

Improve response times and interaction costs with automated RFQ support

Integration hub streamlines order processes real-time between

ERP, suppliers, and customers

Real-time collaboration between resellers and suppliers increase sales staff productivity by 37%



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Avnet enables Suppliers and Resellers to become On Demand Businesses

Challenge

Provide value-added bridge between suppliers and thousands of resellers

A solution powerful yet flexible enough to integrate with all of suppliers’ and resellers’ existing business processes

Solution

Automate needs of resellers from lead generation, to proposal and quote design, all the way to closure

Guided selling, automated information delivery, collaboration between suppliers & resellers, analytics and sense and respond capabilities

“Technology has enabled us to reach out and provide IT support for our resellers and our

suppliers—to lift them up and make them more competitive”–Bill Chapman, CTO, Avnet Inc.

BenefitsROI of 360% in first year 37% increase in sales staff productivity82% reduction in resellers’ order cycle

time; 85% reduction supplier cycle time 20% reduction in overall IT costs 58% of reseller orders fully automated

from end to end


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Hosted Partners

Scenario An enterprise selling through a network of partners

Enterprise supports smaller partners by providing catalog and IT infrastructure to create a store-front

Challenges Ability to onboard a new partner that does not have

IT infrastructure

Selectively share catalog while allowing partners to sell their own products

Maintain consistent brand image and user experience while offering unique products tailored to specific set of customers

Hosted Partners

Manufacturer

Partner/Reseller Network

Channel Hosting


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National Accounts

Scenario An enterprise selling to major customers through a

network of partners

Supporting dealers by providing catalog, Contract pricing, terms, and IT infrastructure to create a consistent national multi-dealer/distributor experience

Challenges Onboarding National Accounts quickly—with

specific Catalog views, prices and terms.

Share customer specific catalog views

Maintain consistent brand, terms and user experience while offering products specific to a set of customers

Hosted Partners

Manufacturer

Partner/Reseller Network

Catalog &

Contract Hosting

Business Customer


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Hosted Partners – WebSphere Commerce Capabilities

Extended Sites

Catalog Filters

Campaigns &

Promotions


Deploy multiple partner storefronts on a single instance

Central site administration with controlled access

Share catalog and business assets across sites Deliver consistent brand experience while running

site-specific campaigns and promotions

Selectively share/filter catalog with partners Allow partners to add their own products

Customer segmentation; targeted marketing Web and E-mail promotion, marketing

experimentation

100’s of individually managed sites while sharing a single

checkout process

Customer Examples*

Distributors use filters to re-price manufacturer’s products to

create their own catalog

Use profiles and preferences, personal lists and targeted marketing to differentiate



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eFollett hosts hundreds of bookstores, enable shared and autonomous functionality from a single instance

Challenge

Redesign the retail platform to host and integrate with more than 900 campus stores

Centrally manage storefronts while allowing partners to differentiate themselves

Solution

Leverage Extended Sites to share the same infrastructure to collectively serve more than 4 million students across North America

Campaign and marketing tools deliver targeted content, advertising, and enhanced user experience

BenefitsServes more than 4 million students

across North AmericaSingle login and checkout process

across all partner sitesCross-sells and feature products drive

additional revenueStreamlined retail process (order-to-

fulfillment) reduces maintenance costs Increased operational efficiency from

automated back-office integration


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Value Chain

Scenario A chain of enterprises that sell goods or services

Multiple manufacturers selling through multiple distributors to end customers

B2B2B or B2B2C

Order handoff

Marketplace hub

Challenges Integrating various demand chain players on a

single platform

Ability to host distributors that do not have IT infrastructure

Aggregating and filtering catalog from multiple manufacturers to display products tailored to individual customer

Tiered Demand Chain

Manufacturers

Distributors

Customers


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Value Chain – WebSphere Commerce Capabilities

Catalog Management

RFQ

Order Management

Channel Management


Catalog sharing with downstream partners Sourcing from multiple upstream manufacturers Catalog filtering to support contracts

Solicit quotes from multiple sources Multi-round negotiation Support for custom and made-to-order products

Automate ordering process from quote-to-cash Order handoff (open/closed orders) to partners Transaction visibility across the channel

Rapidly onboard new partners with Extended Sites Manage business relationship through Contracts Collaboration tools to boost productivity

Integrate with multiple manufacturer catalogs and filter

appropriately for end users

Customer Examples*

Reduced RFQ lead times from days to minutes

Integration hub streamlines order processes real-time between

ERP, suppliers, and customers

Provides suppliers and resellers with real-time info to

optimize decision-making



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Changing Inc Orchestrating the Demand Chain

Challenge

Provide online commerce capabilities for paper industry extended demand chain

Minimize cost and additional workload to support new channel in demand chain

Solution

Integrated network connects manufacturers, distributors and customers

Manufacturers and distributors can set and manage their own storefronts hosted in Changing Inc environment “Reordering makes up 60 percent of our business

and now members can see all their previous orders and reorder with just a keystroke”

BenefitsCreated consortium of 7 manufacturers

which includes a broad product line needed by demand chain

Implemented using existing business partner

Secured business with new customers even prior to launch

Platform for building relationship, loyalty and improving revenues


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PartnersValue Chain

Selling directly to businesses or

customers

Catalog mgmt.

Contracts

Req. List

Member mgmt.

Extended Sites

Bridge between suppliers and

customers

RFQ

Guided Selling

Configurator

Order Mgmt.

Workspaces

Selling through a network of partners

Extended Sites

Catalog Filters

Campaigns & Promotions

Collaboration Tools

Selling through a chain of enterprises

Catalog mgmt.

RFQ

Order mgmt.

Channel mgmt.

Extended Sites

Business Models

WebSphere Commerce Capability

Customer Examples


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Other B2B and Industry Plays in XL

Link to Xtreme Leverage (XL): http://w3-103.ibm.com/software/xl/portal/viewkitcontent?srcID=KP01&kitID=V227365O87155H39&contentID=Y957159X83272J32&contentType=component&contentTitle=Presentations

WC B2B Business Models

WC Electronics Sales Play

WC B2B Business Processes (Cross-Industry Sales Play)

WC Telco Sales Play

® ibm software group © 2007 ibm corporation websphere commerce b2b business models

Documents

business slide

business organizations

box business models

business retailers

b2b ecommerce

wide range of business

total b2b sales

business managers configurable