A very brief overview of the changing dynamics that have happened in the way consumers research, browse online, and shop. Highlighting how the traditional path to purchase has dramatically changed with countless and varied touch points to manage to ensure you succeed in marketing and acquiring customer purchases. This includes how IBM have been at the forefront of addressing this change through Smarter Commerce. IBMs class leading portfolio of solutions that empower both retailers and B2B organizations succeed online and in-store.

1. © 2014 IBM Corporation 1IBM Confidential
THE DIGITAL CONSUMER Imran Choudhary
IBM, Smarter Commerce Lead

2. © 2014 IBM Corporation 2IBM Confidential© 2014 IBM Corporation 2IBM Confidential
THE CHANGES AFFECTING RETAILERS
Change Has
Happened
Smarter
Commerce
Opportunity

3. © 2014 IBM Corporation 3IBM Confidential
Digital has become an
unavoidable part of our
path to purchase: we use it
to get information, to
compare products and to
finally decide where is more
convenient to make the
purchase based on our
buying criteria
© 2014 IBM Corporation

4. © 2014 IBM Corporation 4IBM Confidential© 2014 IBM Corporation 4IBM Confidential
Check
advertising Go Direct Compare SHOP
Go to the
Store
Check
around
Compare SHOP
Surf the
web
See a
product I
like
Compare SHOP
MOST RETAILERS ENGAGE THE CONSUMER IN A SILO’D FASHION

5. © 2014 IBM Corporation 5IBM Confidential© 2014 IBM Corporation 5IBM Confidential
Ask for
advice
Check
advertising
Compare
products
online
Go to
store
Learn
about the
product
Read
reviews
Download
the app
Check
youtube
video Check
Facebook Check at
the offline
store
Browse the
Site
Google
the
product
SHOP
THE PATH TO PURCHASE IS NOW VASTLY COMPLICATED

6. © 2014 IBM Corporation 6IBM Confidential
IBM SMARTER COMMERCE
How we maintain and ensure our
leadership in the commerce
industry

7. © 2014 IBM Corporation 7IBM Confidential© 2014 IBM Corporation 7IBM Confidential
QUICK IBM FACTS

8. © 2014 IBM Corporation 8IBM Confidential
LEADERS ARE REDEFINING
THEIR VALUE CHAIN
AROUND THE
EMPOWERED
CUSTOMER
prepared
for the unpredictable
A supply chain Marketing targeted to
every customer
personally
what customers want before
they do
Service that knows Selling that’s there for your
customers,
whereverthey are

9. © 2014 IBM Corporation 9IBM Confidential
SMARTER COMMERCE SOLUTIONS
TOGETHER FORM A ‘SYSTEM OF
ENGAGEMENT’
Customer
System of
engagement:
Coordinates
all decisions across all channels
to create an engaging relationship
with each customer and prospect
ad
social
search
display ad
Web
mobile
email
ATM/kiosk
phone
branch
POS
mail

10. © 2014 IBM Corporation 10IBM Confidential
THE OMNICHANNEL ROADMAP
Mono
Channel
Multi
Channel
Cross
Channel
Omni
Channel
Single
Channel
More Than
One Channel
Synergies Fusion

11. © 2014 IBM Corporation 11IBM Confidential
IBMS INTEGRATED PORTFOLIO TO PUT THE CUSTOMER AT THE CENTRE
OF EVERYTHING
Smarter Analytics
CORE BUSINESS SOLUTIONS
VALUE CHAIN STRATEGY AND SERVICES
Anticipate
behavior and
deliver flawless
customer service
IBM SmartCloud Solutions and Smarter Computing
Seamless
cross-channel
customer
experience
Targeted and
personalized
marketing across
all channels
Adaptive
procurement and
optimized supply
chain
Buy Market Sell Service
MarketBuy
Service Sell

12. © 2014 IBM Corporation 12IBM Confidential
OPPORTUNITY

13. © 2014 IBM Corporation 13IBM Confidential
£911
£1,078
£1,235
£1,388
year 2013 year 2014 year 2015 year 2016
B2C ecommerce sales worldwide, by region (billions)
North America APAC Western EU Central & Eastern EU LATAM Middle East & Africa
Source: emarketer – B2C ecommerce sales worldwide by region. Includes travel, digital downloads and event tickets
£-
£50
£100
£150
£200
£250
£300
2013 2014 2015 2016
EU B2C Revenues 2013-16 (Bn)
UK DE FR ES IT NE NORDICS ROWE CEE
Germany
France
United Kingdom
Turkey
0%
50%
100%
0% 50% 100%
Internetusersas%ofpopulation
Online buyers as % of population
European Digital market potential by country
SOME OLD NEWS:
• The digital market is
where growth lies
• The UK is one of the key
leaders of the industry
globally
Source 2014 / emarketer – B2C ecommerce sales worldwide by region

14. © 2014 IBM Corporation 14IBM Confidential
Source – Forrester, 2013 B2B Commerce Wave
SOME ‘NEW’ NEWS: A SHIFT IS ALSO
HAPPENING IN THE B2B MARKET?

15. © 2014 IBM Corporation 15IBM Confidential
USING BIG DATA TO EMPOWER MARKETING DECISIONS,
CUSTOMER ENGAGEMENT & HIGHER SALES REVENUE
Solution Area (IBM Name) Description Software
Digital Marketing
Optimization
Fuses customer profiles and web analytics to easily
execute display advertising, search campaigns, email,
and personalized recommendations through online, social
and mobile channels.
Cross-channel Marketing
Optimization
Engage each customer and prospect in a cross-channel
dialog that builds on past and current behavior.
Price, Promotion and Product
Mix Optimization
Quantify consumer behavior to make predictive
merchandising and marketing planning decisions that
drive sales volume, margin, profit, and shopper loyalty.
Customer Experience
Optimization
Captures each users end-to-end experience via digital or
mobile and then allows organizations to replay the actual
sessions to understand where customers are struggling and
quantify the impact.
Service
Market

16. © 2014 IBM Corporation 16IBM Confidential© 2014 IBM Corporation 16IBM Confidential
TEALEAF AT THE MOVIES!
HTTPS://WWW.YOUTUBE.COM/WATCH?V=YBZXYUOWGQA

17. © 2014 IBM Corporation 17IBM Confidential
GIVE THE CUSTOMER WHAT THEY WANT
BUILDING A RETAIL SELLING PLATFORM
Transact Fulfil ServeEngage
Web StoreMobile Call Center Social
Networks
Field Sales
• Customer / Partner mgt
• Catalog / Search
• Content management
• Merchandising
• Promotions
• Personalization
• Guided selling
• Configuration / Visualization
• Reviews
• Wishlist / Registry
• Price
• Availability / Promising
• Cart management
• Entitlements
• Quoting / Contracts
• Shipping and Tax
• Appointments
• Payment
• Fraud
• Address verification
• Order Hub
• Sourcing and scheduling
• Order orchestration
• Drop ship / supplier fulfil
• Delivery management &
Service fulfilment
• Digital fulfilment
• Subscriptions
• Exception management
• Changes and cancellations
• Returns
• Exchanges
• Appeasements
• Reverse logistics
• Self-service
• Warranty
• Repair
Configurable processes Analytics Management and administration
Ultra-scalable commerce platform Range of deployment options
Service
Sell

18. © 2014 IBM Corporation 18IBM Confidential© 2014 IBM Corporation 18IBM Confidential
TAKEAWAYS
 The market is growing, retailers are having to invest otherwise they risk failure.
 B2B is as relevant or more than B2C.
 IBM has class leading technology, we dominate the Enterprise space (IR500), and are actively
targeting the Mid Market
 Quick Wins are possible with Tealeaf with an average return of 3.5% increase in sales from
identifying and fixing those ‘unknown’ customer struggles.
 IBM is empowering not only the IR500 but the Mid Market with easy to deploy Starter Stores
which can get you online fast and against commercial models that de-risk your investment as
you grow.
 Find an EcoSystem, develop relationships, innovate, and create new business channels.

19. © 2014 IBM Corporation 19IBM Confidential© 2014 IBM Corporation 19IBM Confidential
THANK YOU
ichoudhary@uk.ibm.com
@MeetTheConsumer