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© 2012 IBM Corporation © 2012 IBM Corporation

Sterling Order Management Overview

Q1, 2013


Disclaimer

3

IBM’s statements regarding its plans, directions and intent are

subject to change or withdrawal at IBM’s sole discretion.

Information regarding potential future products is intended to

outline our general product direction and it should not be relied

on in making a purchasing decision. The information mentioned

regarding potential future products is not a commitment,

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and timing of any future features or functionality described for

our products remains at our sole discretion.


Agenda

Overview of IBM Smarter Commerce

Integration with WebSphere Commerce

Sterling Order Management Overview

What’s coming next

Questions and Answers

4 © 2011 IBM Corporation.


The reality: Empowered customers are connected to each other

5

of consumers online trust recommendations, 70% trust unknown users

90%

billion minutes on social sites last year, 1 in 4.5 minutes online

$110

BBVA did! Positive feedback increased by 1%

Negative feedback decreased by 1.5% in Spain

You could use consumer insights to increase

sales?

You could gain actionable insight from

customer sentiment on social networks?

Increased coupon redemptions by 200%

Increased unique visitor by 41%

Petco did!

What if…


The reality: Empowered customers have access to information

6

are more price-conscious today

grocery items in the United States were sold on promotion Schwans did!

15.6% higher revenue

Increased revenue and a 11.5% higher margin for Kroger

You were proactive on supply chain exceptions

before they had an impact on costs?

You could use analytics for a better promotion

plan with your retail partner?

True Value did! Alerts when lead times are missed

Reduced out of stocks and enabled inventory optimization

What if…

58%

43%


You need to put the customer at the center of your business

Anticipate and deliver in a social and mobile environment

To improve performance and accelerate your transformation

Apply deep insights to take action in real time

Integrate and extend core processes and systems to synchronize your value chain

Optimize sourcing and procurement based on customer demand

7


Buy Sourcing,

controlling and procurement of goods and

services

Market Targeted and personalized

marketing across all customer

interactions

Service Servicing customer

needs across all interaction

channels

Sell Enables selling and fulfillment of products and services across

all channels

At IBM, we call the path forward Smarter Commerce placing the customer at the center of your business

8


IBM with Smarter Commerce is integrating and

synchronizing the value chain

9

Targeted and

personalized marketing

across all channels

Chief Marketing Officer (CMO)

Seamless cross-channel

customer experience

VP of Commerce, Stores and

Operations

Adaptive

procurement and

optimized supply

chain

Chief Sourcing and

Procurement Officer; Chief

Supply Chain Officer

Provides services and

delivers them

flawlessly

VP of Customer Loyalty

Market Buy

Service Sell

© 2012 IBM Corporation

Buy Market Sell Service

CORE BUSINESS SOLUTIONS

CUSTOMER VALUE STRATEGY

WebSphere Commerce

• Cross-Channel Selling • Customer-centric

Shopping Experience • B2C/B2B Storefronts • Precision Marketing

Coremetrics • Analytics & Reporting • Segmentation • Search Optimization

Sterling Commerce • Order Management • Configuration, Pricing, Quoting • Multi-vendor catalog • Warehouse Management • Transportation Management • Supply Chain Visibility • B2B Integration

Unica • Resource Mgmt • Campaign Mgmt • Marketing

execution • Performance • Analysis

ILOG Supply Chain • Network Optimization • Transportation

Optimization

Sterling Commerce • Transportation Management • Supply Chain Visibility • B2B Integration • Supplier Portal Vendor Compliance

ILOG Supply Chain • Product Optimization • Inventory Optimization

Toshiba • Retail POS Solutions • Self-Service Portal/Kiosk • POS Applications

Sterling Commerce • Delivery & service

Scheduling • Reverse Logistics

IBM Case Manager • Case Design, Run-time,

Analytics • Collaboration • Rules & Events

Unica • Service messaging • Notifications

CUSTOMER INSIGHT SOLUTIONS

Smarter Commerce investments expand supply chain capabilities

Emptoris • Spend Analysis • Sourcing • Contract Management • Supplier Lifecycle Management • Category Compliance Management

Telecom Expense Management Services Procurement

DemandTec • Price, Promotion,

Merchandising • Marketing Analytics

Emptoris • Contract Management

10


Customers and partners buy

what they want, when and where

SMARTER ANLYTICS IBM SmartCloud and Workload Optimized Systems

CORE BUSINESS SOLUTIONS

VALUE CHAIN STRATEGY AND SERVICES

MARKET

SELL Anticipates

behavior and delivers flawless customer service

SERVICE

BUY

Intelligent and optimized supply chains based on

demand

Personalized and relevant offers

with unified multi-channel

marketing

Smarter Commerce: A modular yet integrated portfolio

11

© 2012 IBM Corporation 12

Faster ROI on Projects

Pre-built integrations across the portfolio means faster deployment

times

API integration to virtually any ERP or CRM system means fewer

system changes and disruption

Lower Total Cost of Operation

Embedded Optimization deliver efficient operations

Integration with and across buy market sell service pillars means more

effective use of IT staff

Greater Business Agility

Embedded Analytics deliver greater insight

Integrated but modular means start anywhere and expand as your

business changes

Mix of Cloud and On-premises solutions delivers flexibility to respond

Key Benefits of an Integrated Portfolio

© 2012 IBM Corporation © 2012 IBM Corporation 13

Selling and fulfillment of products and services across all channels

Sell Customer

Insight Strategy

Engagement

Servicing

customer needs across all

interaction channels

Service

Smarter Commerce: Delivering Integrated Solutions


Smarter Commerce helps deliver “one brand experience” across both direct and extended channels

Partners and Affiliates

Content Aggregators

Social Networks

Extended Channels

Shopping experience, Marketing campaigns and

promotions

POS

Kiosk

Call Center

Mobile

Web

B2B / Dealers

Distributors

Field Sales

Direct channels Widgets for products and promotions

IBM Multi-Channel Commerce

14


…while order management extends the story through the entire Selling & Fulfillment lifecycle

Mobile

Procurement Orgs

VAR

Large

Enterprise

SMB

Customers Marketplaces

Retailers

Distributors

Resellers / Dealers

B2B / Partners

Order & Fulfillment Orchestration

Order Management

Transportation Management

Warehouse Management

Supply chain Visibility

Cross-channel Customer Experience

1. Let customers buy the way they want

2. Provide value added services

3. Be smart how to interact with them

15


ORDERS

Orchestrating Cross-channel Orders…

Special Order

Stores

Kiosk

Order: •Decomposition •Disposition •Re-composition

DCs

Any, Any, Any, Any

• Combined with

WebSphere Commerce,

captures orders through

any channel

• Efficiently manages order

orchestration across

internal and external

sources of supply with

configurable processes

• Pro-active monitoring and

exception management

Multiple:

Manufacturers – Domestic – International

Brokers Distributors

Retailer

TV

Catalog/ Call Center

Web

Status

16


Multiple:

Warehouses Stores Manufacturers Suppliers /

Distributors Logistics providers

•3PL/Carrier •Freight Forwarder •Customs

Store To Customer

•Sequence •Date/Time •Dependency Adjustments

Service Partner-to-home Drop-ship/Delivery/Installation

Fulfillment flexibility

• Offer advanced fulfillment through any channel, including:

• Ship from DC

• Store Pick-up

• Ship to Store

• Ship from Store

• Drop ship

DC/Store/Consumer

…and order fulfillment

Delivery of Product

17


Pe

rform

an

ce M

an

ag

em

en

t?

Glo

bal

Vis

ibil

ity ?

Fulfillment Network.

Distribution Centers 3PL’s Drop Shippers Store Network

Enterprise

Applications

External

Services

Call Center eCommerce Store Mobile Kiosk

Customer Interaction Channels

Customer Expectations

When will my order arrive?

What Steps are Required to Fulfill each Specific Order Line?

How do we Coordinate these Steps Across Applications?

What are the Fulfillment Rules for a Specific Order Line?

How do we Best Leverage the Fulfillment Network?

How do we Remain Flexible to Enable New Business

Initiatives?


Fulfillment Network.

Distribution Centers 3PL’s Drop Shippers Store Network

Enterprise

Applications

External

Services

Call Center eCommerce Store Mobile Kiosk

Customer Interaction Channels

Smarter Commerce Order Management

Pe

rform

an

ce M

an

ag

em

en

t?

Glo

bal

Vis

ibil

ity ?

Promising

(ATP)

Order

Orchestration Visibility

Cross Channel Inventory and Order Hub


WebSphere Commerce integrations with Sterling Order Management and Call Center

Key Integration Capabilities Enabled Over Time Orders captured in WC are passed to Sterling OM; order history and status returned (4Q10)

Cross-channel order promising and common order process support, OM the master for inventory / promising; availability snapshot fed and cached to WC, and WC can call OM real-time when availability is low or for reservations (2Q11)

Improved promising integration, single order repository and pricing / promotion integration allows for consistent cross-channel support (2Q12)

Using WC V7 FEP5 and Sterling 9.2 pricing / promotions integration, Call Center can now be used with WC for both order capture and post-order customer support (2Q12)

WC and Sterling OM can be deployed in a seamless side-by-side combination that greatly

reduces customer time to value; select Call Center scenarios are also supported

20 20

Delivered 2010-2012


What makes IBM® Sterling Order Management different?

Collaboration is our core business – Cross-channel and multi-tiered flows

• Web, Field Sales, Call Center, Store, Mobile • B2B, B2C, B2B2B, B2B2C

– Customer and trading partner collaboration • 30,000+ trading partner community, on-boarding and support services

IBM Sterling Order Management was built for multi-enterprise business processes

– Master data management, including complex catalog, pricing and configuration – Aggregated inventory visibility – Distributed order orchestration across the supply chain – Configurable processes and rules are configurable to help quickly respond to market demands

IBM Sterling’s intelligent applications drive supply chain excellence – Sourcing across internal and external boundaries – Proactive exception monitoring and alerting – Embedded business intelligence driving processes

21


IBM® Sterling Order Management solution footprint

Selling and Fulfillment Foundation

Global Inventory Visibility

Delivery and Service

Scheduling

Distributed Order

Management

Reverse Logistics

Business Intelligence

Call Center Store Field Sales

Supply Collaboration


Global Inventory Visibility Optimizes inventory usage and promise dates


Capabilities • Consolidates inventory information across

multiple systems, enterprises, and participants

• Intelligent sourcing engine optimizes inventory use across the extended enterprise to provide best Available-to-promise (ATP ) dates

Benefits • Complete view of all supply and demand • Fewer stock outs and better inventory

utilization • Increase customer satisfaction with real-

time ATP capabilities


Distributed Order Management Orchestrates Complex Fulfillment


Capabilities • Coordinates complex fulfillment across the

extended enterprise • Provides a single order repository to modify,

cancel, track, and monitor the order lifecycle in real-time

• End-to-end payment processing • PA-DSS Certified • Configurable, adaptive processes

Benefits • Increase revenue through enhanced ability

to meet customer demands • Reduce manual processing and order cycle

time • Increase customer satisfaction


Reverse Logistics Efficiently Manage Returns and Exchanges


Capabilities – Enables cross-channel returns and

exchanges – Automate returns dispositioning,

such as return to stock, return to supplier, or destroy

– Links return requests to original sales orders, to enable lifecycle tracking

Benefits – Increase customer satisfaction – Reduce the cost of returns

processing – Efficient inventory utilization

through a consistent returns process

Customers

Customer Service Returns

Catalog Sales

Records

Web Sales

Records Destroy

Sales Floor

Shipping

Returns Staging

Store


Sterling Supply Collaboration


Capabilities • Automatically create POs to send out to

suppliers for drop shipment or replenishment

• Manage PO lifecycle, and track exceptions • Order status is automatically updated from

POs tied to Orders (e.g. for drop ship)

Benefits • Enable expanded assortment without

breaking the bank • Increase customer satisfaction through

enhanced status visibility • Reduce manual processing


Delivery And Service Scheduling Drives Revenue And Customer Satisfaction


Capabilities • Ability to schedule delivery, installation,

and other add-on services at time of order transaction

• Rules-based promising, provider selection and crew allocation

• Integrated control of inventory, delivery and services execution

Benefits • Ability to schedule one-time or on-going

services • Increase crew productivity while

decreasing costs through proactive management of exceptions

• Increase customer satisfaction via more accurate service scheduling


Distributed Order Management Configurable, Adaptive Processes


Flexible pipelines provided via process modeling helps manage entire order process and integrates event management, there by reducing the need for programming/ customization efforts


Selling and Fulfillment Suite Foundation: Business Administration


Capabilities • Web-based application that enables

business owners to administer key data and configuration

• Product and pricing data • Task-based workflows designed to support

how business users work • Web 2.0 interactivity gives business users a

thick client experience using a web browser

Benefits • Introduce new products more quickly

and respond to changing market demands by putting control in the hands of business users

• Improve operational efficiency by adapting application to business user needs


Selling and Fulfillment Suite Foundation: Business Intelligence

Capabilities • Data marts to track order metrics

across important dimensions like customer, segment, geography, industry

• Easy to use dashboards and reports to make key business metrics available to business owners to track their performance

• Comprehensive ETL and reporting capability for easy authoring of ETL scripts and reports from a single data definition

Benefits • Creating levers for strategic control

throughout an organization • Provide actionable insight to business

users decisions by making key business metrics available to facilitate decision making



Reports Home Page

31


Channel Products support the ways you sell


Supports all of the ways your customers interact with their customers and partners - web, mobile, field sales, store, and call center

Store

Call Center

Field Sales

Sterling Call Center lets you manage the various order capture

and fulfillment processes in your call center.

Sterling Store lets you manage the various order capture and

fulfillment processes in a multi-store environment.

Sterling Field Sales allows field sales and service representatives

to manage all aspects of order capture, quoting and service

fulfillment processes using a thin client browser-based user

interface. Mobile Applications that leverage the presence and convenience of mobile devices and extend the reach of the enterprise operations, bringing value to consumer interactions and operational processes in the store, field sales and support systems

Mobile


Sterling Call Center

Capabilities • Multi-channel call center solution gives

CSRs visibility into selling and ordering and returns processes across channels and fulfillment methods

• Wizard-driven processes designed for how the Call Center agent works

• Enables the call center agent to track sales opportunities, provide quotes and convert quotes to orders

• Proactive exception management

Benefits • Decreased call time, reduced training costs

and more accurate orders • Increase customer satisfaction by handling

customer requests and exception events more efficiently



Sterling Store

Capabilities • Enable the “endless aisle” by allowing

store associates to place special orders for direct shipment and/or pick-up in store

• Visibility to inventory in other stores and DCs in real-time and order placement for alternative store-pick-up or ship

• Enable stores to participate in multi-channel order management process

• Enables Store based fulfillment • Enhances existing POS and merchandising

systems

Benefits • Improved store inventory utilization • Improved fulfillment and availability

choices • Increase customer satisfaction by providing

more in-store options



Mobile Commerce Applications from Sterling


Commerce

Focused

Mobile

Apps

Optimize the customer buying experience by providing more choice

in when, where, and how product, inventory, and order information

is accessed and used enhancing customer convenience and

improving revenue potential.

Store Associate Mobile Mobile Store Channel

Operations

Focused

Mobile

Apps

Optimize business responsiveness by enabling access to system

and process information anywhere to handle critical operational

requests, track and report status, and resolve issues, thus

improving business efficiency and productivity.

Integrator Mobile Control Center Mobile

Order Mgt. Admin. Mobile TMS Carrier Mobile


Sterling Store Associate Mobile

Capabilities

– Allows Store Associates to use a mobile device to check inventory across the store and fulfillment network, and place orders to save-the-sale

– Allows visibility into the full product catalog to help the customer get more product information and order endless aisle items

– Allows Store Associates to use a mobile device to stage items for customer in-store pick-up

Benefits

– Keep Store Associates on the floor helping customers

– Increase revenue by enabling Store Associates to meet customer needs



Sterling Field Sales Mobile

Capabilities – Allows Field Sales representatives to use an iPhone mobile

device to check inventory across the fulfillment network, place orders, and check order status.

– Allows Field Sales managers to approve quotes on the iPhone – Allows Field Sales representatives to create quotes on the

iPhone

Benefits – Increase productivity - keep sales representatives in the field

helping customers – Increase revenue by enabling sales representatives to access

the information needed (e.g. availability) to meet customer needs ASAP

© 2011 IBM Corporation. 37


18 Month Roadmap

38


Key Order Management Initiatives for 2013

39 © 2012 IBM Corporation

Cross-channel POS

Advanced Store

Fulfillment

Ultra Scaleability

• Cross-channel POS: Enable convergence of Cross-channel and POS to extend seamless cross-channel experience to Stores at lower TCO and provides significant functional enhancements for pricing, promotions and returns

• Advanced Store Fulfillment: Continue to expand standard store fulfillment scenarios of increasing complexity enable omni-channel fulfillment

• Next-gen Call Center / WC Synergy: Continue to deliver on WC/OM synergy, including deliverof of an end-to-end, omni-channel Call Center that leverages web technology to reduce complexity of deployment complexity and mgt

Next Gen Call Center / WC

Synergy

• Ultra Scaleability: Continue technical leadership with innovative ways to scale to extreme levels with promising server and sharding


Questions?

40

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