IBM Digital Experience on Cloud: A Quick Overview

Agenda & Speakers

Introduction • Gary Dolsen, IBM, VP Digital Experience, IBM Software Group

Review of IDC Findings • Melissa Webster, IDC, Program Vice President, Content and Digital Media

Technologies

• Randy Perry, IDC, Vice President, Business Value Consulting

Portfolio Product Overview and Demo • Mahendra Pingale, IBM, Principal Offering Manager – Digital Experience

• Bryan Daniel, IBM, Senior Technical Specialist – Digital Experience

Closing / Q&A • Gary Dolsen

IDC Findings

Demonstrating the Business Value of IBM Digital Experience on Cloud

Randy Perry

VP, Business Value Consulting

Melissa Webster

VP, Content & Digital Media

Demonstrating the ROI of IBM Digital Experience IBM Customer Survey Findings

TOTAL BENEFITS >$300,000 FOR EVERY 100 USERS ANNUALLY

IMPROVED

BUSINESS

PRODUCTIVITY

BY 11%

ENHANCED USER PRODUCTIVITY 13%

REDUCED TCO BY 47%

IBM DELIVERED FIVE

YEAR ROI OF

>500% AND PAID BACK THE

INITIAL INVESTMENT IN

<7 MONTHS

5

Organizations Increasing DX Spend Q. Over the next 2 years, will your organization’s budget for creating and delivering

digital experiences:

Increase somewhat

53%

Stay about the same

26%

Decrease somewhat

1%

Decrease significantly

0%

Don't know 2%

Increase significantly

18%

6

% of respondents

n=750; IDC’s Digital Experience Survey 2016.

0 20 40 60 80 100

Traditional Web

Mobile Web for tablet users

Mobile Web for smartphone users

Social networks or community sites

Mobile apps for smartphone users

Mobile apps for tablet users

Email campaigns

Digital signs and kiosks

Smart TVs, other 'connected' devices

Wearables

% of respondents

Q. Which of the following channels are priorities for your company/organization for

creating and delivering digital customer experiences?

7

Delivering Multi-Channel DX an Imperative

n=750; IDC’s Digital Experience Survey 2016.

Cost, TTM, Ease of Use Top Selection

Criteria

0 20 40 60 80 100

Cost

Quick time to deploy

Ease of use/authoring

Strong workflow

Multi-channel publishing

Rich media/video capabilities

Multi-site management

Integrated eCommerce

Create launch sites without IT help

Ease of integration/extensibility

Community features

% of respondents

Q. How important are the following capabilities in choosing a WCM solution?

8

n=750; IDC’s Digital Experience Survey 2016.

see significant benefits in

leveraging a single solution

across all of Web publishing

needs – including public facing

sites, Intranets, and Extranets

9

n=750; IDC’s Digital Experience Survey 2016.

60%

say availability via cloud is an

important selection criterion 53%

Growing Interest in Cloud, Broad-

Based Solutions

Digital Experience Continuum

10

Intranets Extranets Web Sites

Customers

• Authenticated +

Anonymous

• Integration

w/apps,

eCommerce, etc.

Employees

• Authenticated

• Integration w/

apps, portal,

ECM

Partners

• Authenticated

• Integration

w/apps, portal,

eCommerce,

ECM

Digital Experience Continuum

11

Intranets Extranets Web Sites

Common Requirements:

Mobile, social, multichannel

Ease of authoring and publishing for business users

Ease of integration with enterprise apps, eCommerce, Web apps

Ability to build rich, engaging experiences; support for rich media

Analytics/optimization to drive relevance, best next action

Performance, scalability, reliability

IDC’s Business Value Study for IBM

12

Demographics of the study participants

13

Annual Benefits Enhancing business and user productivity accounts for 90% of total benefits

14

5 Year TCO: Build vs Buy IBM’s solution cost 47% less than building a solution in house

$683 $327

$1,359

$895

$665

$288

$726

$328

$187

$69

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

Build IBM

Five year costs per user

Annual IT support -portal users

Annual IT support -portals

IT Labor to develop/install

Software

Hardware

Infrastructure

40%

IT Labor

57%

Overall reduction

47%

15

Time to Market – IBM Digital Experience can go from concept to

production in half the time of other solutions

Solution Time to Market

KPIs

Other IBM Advantage

Time to design (weeks) 1.98 1.10 44%

Time to develop (weeks) 4.20 2.10 60%

Time to deploy (weeks) 1.88 .66 65%

Total 8.06 3.86 52%

16

User Productivity Benefits The big driver in benefits is

creating an environment that increases user productivity by 13%

IDC 2013

17

User Productivity

Benefits

• Faster to market

• Reduced errors

• Streamline opns

• Faster search

• Better decisions

Increased Collaboration

I think they are saving about 10% of their

time. They are saving time with the

education, and collaboration

improvement, and finding the right

information at the right time.

Integrated data sets

Every user is a beneficiary. Externally we

use it for our workflow related to

financial transaction offerings.

Internally there is a process of

reimbursement here where you have

your phone bill, your travel expenses,

and your data expenses. I would say

that we have at least a 75% benefit.

Self service

People are saving a tremendous

amount of time. If there’s a call we

push it back out, and say - you can

see all of this information directly.

As customers are getting used to

doing that, then the call load is

going down.

Increased

available time

by 13%

Increased

operational

output by 11%

User Productivity Reliability, resilience and performance add

two days of productivity to each user

Reliability KPIs Other IBM Benefit

Value

Advantage

Downtime Hours per Year 36.4 5.0 31.4 86%

Service Desk Issues 868.5 647.2 221.3 25%

Security - Viral

Attacks/Denial of Service

23.1 0 23.1 100%

Total hours per Year that

users are affected

928.0 652.2 275.8 30%

Hours per year per user 19.7 2.8 16.9 86%

Annual savings per 100

Users

$8,254

18

Business Productivity Benefits - Companies generating revenue from their

extranets are realizing an additional $750,000 in revenue from enhanced operations

Business Productivity Metrics

Operations Productivity Increase 11%

Average Annual Benefit per 100 Users $97,090

Revenue Increase $750,000

Operating Margin (Assumed) 20%

Net Revenue Benefit (Revenue X Margin) $150,000

Average Annual Benefit per 100 Users $5,604

19

Operating margin is a device that allows us to convert revenue increase (a top line number) into

operating profit (a bottom line number) so it can be combined with cost reduction in our ROI analysis.

Every $1 of revenue gained is assumed to have $.80 in costs (such as COGS).

Five Year ROI Analysis

5 Year ROI Metrics

Per 100 Users

Benefits $1.09 Million

Investment $.18 Million

Net Present Value (NPV) $.9 Million

ROI (NPV/Investment) 502%

Payback (months) 6.6

Discount factor 12%

IBM Digital Experience paid for itself in less than seven

months from deployment

20

Additional Benefits from Deploying Multiple

Use Cases

$17,053 $45,936

$46,037

$50,267

$113,090

$139,602

$79,215

$118,869 $2,226

$7,792

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Intranets Only Intra/Extra

Annual Benefits per 100 Users

Business Productivity -Revenue

Business Productivity -Operations

User Productivity

IT Staff Productivity

Infrastructure

21

Cloud deployments bring strong

improvements to the digital experience

34%

89%

145%

34%

97%

73% 74%

96%

Advantages of Cloud over On-premises

22

Key Areas of Focus for Use of IBM Digital

Experience

33%

44%

56%

67% 67% 67%

78%

89% 89%

COMMERCE MARKETING INTEGRATION MOBILE BUILDING COMMUNITIES

SOCIAL PUBLISHING

CUSTOMER SELF-SERVICE

WEB PUBLISHING

ANALYTICS

23

Essential Guidance Customers who embrace IBM Digital Experience are realizing

a compelling ROI:

• Improved business productivity by 11%

• Improved user productivity by 13% through enhanced user

experience

• Reduced TCO by 47%

• ROI >500%, payback within 7 months

• Total benefits >$300,000 per 100 users, annually

Customers see even greater benefits when they leverage

IBM’s solutions across multiple use cases

Mobile, social, ease of integration/portal/eCommerce, rich

media/experiences, analytics are IBM strengths

24

Key Questions for Customers

Do you need to develop and deploy engaging digital experiences in

less time and respond more quickly to enhancement requests?

Can you integrate existing enterprise applications and data into new

experiences and manage the deployment of content and application

functionality in a unified way?

Can you customize digital experiences to the extent needed?

Does your deployment model have the flexibility you require?

Are you experiencing significant downtime or system outages —

either unplanned or scheduled?

How important is reducing the IT staff time required to support

related hardware and software?

How does your current solution stack up when it comes to security,

reliability, and scalability?

25

IBM Digital Experience Product

26

IBM Digital Experience on Cloud: A Quick Overview

Mahendra Pingale Principal Offering Manager

IBM Digital Experience on Cloud

pingale@us.ibm.com / @mkpibm

Designer

Developer

IBM Digital Experience helps

customer experience teams

create adaptive, personal and

relevant experiences that are

managed by the business.

Site Owner

What is IBM Digital Experience?

Key Pain Points

1. Infrastructure work increases

project costs, risks and delivery

timelines.

2. Customers face acute deficit of

specialized Java EE and

middleware admin and operations

skills.

3. Enterprise service levels and HA

targets can be expensive to attain.

Market-leading IBM Digital

Experience platform.

Managed and hosted by IBM on

robust, private, secure and

dependable SoftLayer infrastructure.

IBM Digital Experience on Cloud

Focus on delivering great user experiences. Leave operations to IBM.

IBM 24/7 SaaS Operations

Customer Teams

24/7 Monitoring Up to 99.93% availability SLA

Designer

Site Owner

Developer

Daily Backups

High Availability included State of the Art Security Site to Site VPN

Regular feature releases Web and Telephone Support Client Success Manager

Simple themes Theme manager

Site Manager Content Management

Script Applications Digital Data Connector Extensibility

ROI Considerations

• Servers, storage and networking hardware / infrastructure.

• Backup hardware and software. • Monitoring hardware and software • DX Software licences. • Supporting software licences (OS,

firewall, anti-virus, monitoring, etc). • Middleware operations. • Infrastructure operations. • Installation, configuration,

upgrades. • Penetration testing, remediation.

Costs avoided

• 24/7 IBM operations with worldwide data center coverage.

• High availability included • Regular upgrades to deliver new

functionality. • No waiting on infrastructure – Get

started right away! • Scale up and down to meet

planned workload peaks – no need to buy capacity upfront.

• Better utilization of people and skills for strategic projects.

• No need to hire Java EE and middleware admin skills.

Benefits gained

ROI of DX on Cloud is usually evaluated in comparison with on-premises deployment. Main considerations are all the costs you would incur to deploy and maintain a system to the same service level.

IDC BUSINESS VALUE EXECUTIVE

BRIEF

“Assessing the Business Value of IBM

Digital Experience on Cloud"

http://ibm.biz/IDC-Paper-on-DXC

Thank You!