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WebSphere Commerce – Express V5.6 Fast, affordable e-commerce solutions for mid-sized companies Overview for <company name> <date> <name> <title>

2 E-Commerce in 2004: Positive Outlook
Surveys, analyst reports indicate a major resurgence in e-commerce B2B Projects to Surge by More Than 40%, B2C Projects Increase by 20%, Evans Data Corp, 2004 “It wasn't all hype. For companies as well as consumers, e-commerce is hotter than ever” Business Week, 2003 The e-commerce time-out has ended. Aberdeen, 2003 “B2B and B2C e-commerce via the Internet continues to grow, with e-commerce returning as a business priority in 2004.” Giga, 2003 “34% of manufacturers say that they will increase their eCommerce investment in 2004…making it the highest increase among all categories” Forrester, 2003 “…decision makers cited eCommerce investments as having the most upside – 35% of firms will spend more next year on initiatives for transaction with buyers and suppliers online.” Forrester, 2003 ¼ of mid-market firms are selling online and 30% more plan to do so in the next 12 months – AMI Partners, 2003 “Networked business-to-business transactions now stand at $2.4 trillion” - Forrester Research “e-commerce represents a growing investment within Global 2000 enterprises as they begin to move toward next-gen sell-side environments” Meta Group, 2003

3 IBM WebSphere Commerce: Powering the Value Chain
WebSphere Commerce solutions allow you to deploy a wide variety of value chain initiatives -- from a simple online sales channel, to e-procurement, to a completely integrated multi-tier demand chain -- all on a single platform. Interact with complete context Automate best processes Deploy & Adapt rapidly & flexibly Integrate across & beyond the enterprise IBM – leading the industry in e-commerce 7 years proven experience and thousands of customers Leader year after year in Gartner e-commerce Magic Quadrant Built on market-leading WebSphere middleware platform Industry-leading features and ability to support variety of solutions and verticals OVERALL BENEFITS: Strengthen and deepen business relationships Optimize sales, marketing & brand effectiveness across channels Maximize operational efficiency and productivity across the value chain Leverage & maximize the value every investment Adapt and grow with agility for competitive advantage Interact with complete context: Easily configure to support the unique ways you do business – and the ways your customers want to do business with you Delivered by: Advanced Relationship Modeling Single, consolidated view of customer Personalized content, offerings, interactions w/ every customer & partner Real time customer profiling Multiple locales supported in single site Analytics for closed loop response Leverage best processes: Maximize results & improve efficiency using out-of-box processes that support the whole spectrum of doing business Merchandizing & marketing Advanced catalog & content management Selling, trading & purchasing tools Reseller marketing, enablement & hosting & distribution Advanced order & inventory: Distributed order & inventory mgmt Distributor & fulfillment center Integration Order hand-off & lead management Collaboration & team selling Adapt & Deploy rapidly & flexibly: Fully leverage and connect your most important assets – people, processes, systems and information Unified platform approach Open, standards based architecture and tools Integrated development environment Self-serve tools free IT to differentiate and capitalize on opportunities (not support LOB) Configurable, extensible, customizable Advanced Business Intelligence & Analytics Service Oriented architecture with components Integrate across & beyond the enterprise: Accelerate ROI by rapidly deploying & adapting to change & opportunities using an open, flexible, unified infrastructure Process centric architecture – allows replace, extend, &/or integrate processes LOB tools to configure out-of-box processes High performance data integration WebSphere Portal for unified interface Comprehensive integration framework & tools: Web services WebSphere adapters WebSphere Business Integrator

4 Just a Few of Our Customers…

5 IBM WebSphere Commerce: Proud of Our Many Customers
We feature many of our customers in high-profile ads, giving them free promotion and helping their own business. Here are some examples of WebSphere Commerce customers in ads. You will notice that some of these, such as Lehigh Valley Safety Shoe,s are midmarket customers.

6 WebSphere Commerce Solution Architecture
Robust, out-of-box business processes enable best practices Built on a scalable platform designed for business integration Individualized interactions based on unique business relationships Self-service business tools to configure processes Any or all commerce initiatives built on a single, unified platform Configurable Business Processes Business Administrator Developer BUSINESS CONTEXT ENGINE CONFIGURABLE BUSINESS PROCESSES IBM BUSINESS INTEGRATION Interact Integrate Relationships & Agreements Personalization Globalization Analytics Marketing Merchandising & Selling Catalog & Content Trading Order Management Digital Media TOOLS Model Transform Manage The Business Context Engine is a key capability we introduce in V5.5. It brings together many individual capabilities we have released in previous versions, but you will see how in 5.5, this capability is significantly enhanced and becomes a key piece of our solution to control the user experience and is one of the key elements that makes our system responsive to individual customer needs. On top of the Context Engine, is our collection of configurable business processes. And we’ve made significant enhancements this release to these 5 subsystems you all should be familiar with. Specifically our Marketing, Merchandising and Selling, Catalog, Trading and Order Management business processes. Obviously the two major components of our architecture, the Configurable Business Processes and the Business Context Engine are built on top of our industry leading WebSphere Platform and leverages wherever possible the great capability of our underlying App Server, Portal Server and Business Integration Capability. An in depth look at our commerce tooling family demonstrates this exploitation of the underlying platform very well. The Line of Business tools, our admin tools and our developer tools are all built and extentions of our WebSphere platform tooling. We believe this architecture and our tight integration with the underlying WebSphere platform is a key differentiator for us in the marketplace, and gives us and our customers significant competitive advantage.

7 Business Context Engine: Contextual Experience Management
Configurable Business Processes Tools Contextual Experience Management Understanding the customer & where they are in the sales lifecycle A consistent “total experience” across points of contact Use everything you know to deliver the right content, capabilities, offers Locale Profile & preferences Behavior & history Organizational attributes Role & associated workflow Policies, agreements, contracts Business Context Engine IBM Middleware Infrastructure Roles, Relationships & Agreements Personalization Globalization Analytics Multi-channel interactions with customers Targeted offers, promotions, recommendations Rich content delivery Interactions & transactions with business customers, suppliers, partners Informs (& learns from)… WC leverages & enhances the processes and policies that differentiate your business. Preserves your competitive advantage -- and makes it sustainable Knows, honors and applies, in real time, the full context behind every interaction with each customer and partner: o Individual characteristics (e.g. demographics, profile, behavior) o Behavior of users with similar individual characteristics o Personal preferences (e.g. interests, language, culture, customized views – (i.e. portlets)) o Organizational characteristics (e.g. company, division/dept, role, responsibility) o History o Policies in place for the type of interaction o Negotiated agreements/contracts in place for the organization the individual works for o Workflows associated with the type of interaction o Locale in which the interaction takes place (for currency, tax, shipping, payment, etc.) DELIVERED BY THE COMPREHENSIVE FEATURES OF THE CONTEXT ENGINE: Policies & Agreements Support individualized business interactions with every customer & partner by automating the unique agreements, rules, and policies that govern the relationships. Roles & Entitlements Capture the structure & roles of the extended enterprise and ensure that employees, suppliers, customers, partners can do their jobs with the right data, access and authority. Personalization Treat each customer as a market-segment-of- one, using everything you know about a customer to create a precisely tailored experience. Learn from every interaction. Localization Further tailor the customer experience by accommodating the unique business, cultural, language and legal requirements of an international or diverse customer set. Analytics Leverage and unify all of the data your business generates to gain new insights, make decisions and take effective action. Close the loop with speed and agility. For…

8 The WebSphere Commerce Family
Powering the Value Chain for Selling, Buying and Channel Management Business Edition Optimize both direct and indirect channels by capturing and deploying best practices across the extended demand chain. Digital Media Enabler Supporting on-line mgmt., sale and distribution of digital assets. Adds: Channel Management Contract and Policy Management Professional Edition Deliver a consistent, personalized user experience across multiple channels to maximize customer loyalty and walletshare. Advanced Roles and Relationships Collaborative Workspaces Adds: Advanced Analytics, Data Mining Live Help Collaboration Reseller Hosting Commerce-Express An easily installed, affordable, yet complete solution enabling growing mid-market companies to do business on the Web. Collaborative Filtering Supplier Enablement Advanced Product Search Aids Buy-Side Support Improved Scalability Multi-round RFQ Basic B2C or B2B Storefront, Shopping Experience Clustering Support Targeted Marketing Merchandising Personalization Order Management Business Analytics Extended Demand Chain Advanced Multichannel Entry e-Commerce

9 WebSphere Commerce – Express V5.6
Helping Midmarket Firms Jump-start or Expand their e-Business NEW! V5.6 GA 4/30 Quickly and easily installed and deployed Built to install and configure fast and easily SMB-friendly Starter Stores, Catalog Import Utility, “lite” development tools speed store creation Low total cost of ownership for a complete end-to-end e-commerce solution Packaged offering meets production, staging and development needs at 34% lower price than MSCS Streamlined design helps keep cost of services low Easy to use and administer Wizard-based tools for marketing/merchandising Intuitive product management tools to manage catalog Supports open standards, other platforms Customers not locked into proprietary platform choice Java-based, 100% J2EE-compliant, and supports Linux, i Series and Windows "We need an infrastructure that is truly extensible so a two-person business can act, look, and feel like the best of big business. With WebSphere Commerce – Express we have an engine that can race with the big boys and win." - Bruce Camber, Director, Small Business School “There are just so many things I like about WebSphere Commerce - Express. Everything works just the way it should. With it we’ve been able to create an entirely new sales channel for our company. With V5.6, IBM continues to demonstrate that they are committed to smaller customers like us.”– Bob Ernst, IT Mgr., Mike Castrucci Chevrolet WebSphere Commerce – Express V 5.5, built off the award-winning WebSphere Commerce platform, is a new, integrated package of software components to help growing mid-market companies build and maintain e-commerce web sites. WebSphere Commerce – Express lets you start with the basics you need to deploy an e-commerce website, and then grow with the industry leader as your needs change and grow. Broad platform coverage supports current and future platform decisions, for scalability, flexibility, and reduced risk. Commerce-Express installs easily – in as little as one hour for Windows - 30% faster (according to internal benchmark testing) and in less than half the steps of MS Commerce Server. A new, mid-market friendly fast-path document called the “Express Guide” as well as a new sample store designed specifically for the mid-market all contribute to rapid store creation and customization, resulting in improved productivity and cost containment. WebSphere Commerce-Express is an affordable solution, with per-processor pricing and flexible terms, making this offer attractive even to firms with small IT budgets. But just as important, it is a complete solution – providing what you need for production, staging and development all at one affordable price - unlike the leading competitor, which charges you at each step of the way. The streamlined install/store deployment keeps service costs under control, and availability on Linux means the total software solution cost including the operating system can be driven lower still. In addition, the common code base with the rest of the WS Commerce portfolio means that 100% of customized code can easily be migrated, keeping future costs under control as well. Wizard-based tools facilitate easy management and administration with minimal assistance or skills training. Tools such as the WebSphere Commerce Accelerator empower the business professional to create and manage marketing, merchandising, operational and customer service activities with minimal training - and no assistance from IT. Finally, support for open standards that has become a hallmark of the WebSphere middleware platform continues with Commerce-Express. Supporting Windows as well as Linux and i Series, Commerce-Express will support your current and future platform decisions. 100% J2EE-compliant and Java-based, WS Commerce-Express also integrates easily with backend applications. MID-MARKET ENTERPRISE value proposition: LOB: Jump-start or expand your online presence with a fast, affordable e-commerce solution tailored to your needs that can generate immediate business value and rapid ROI. Up and running fast, ready out-of-the-box with the features you need Low total cost of ownership: Per-processor pricing and flexible terms, Linux availability, streamlined installation & fast-path documentation to keep costs down Easy to use and administer: Intuitive Product Management Tool and Wizard based tools for marketing initiatives IT: Leverage existing IT investments and skills with 100% Java, J2EE-compliance and web services-enablement Helps protect investment and reduce risk Brings business and I/T together by empowering the business professional with web-based tools

10 WebSphere Commerce – Express V5.6: Designed for Medium Businesses
Quick Install lets you start building your store in a little over an hour Starter Stores and Catalog Import Utility get your store online fast New “lite” development environment 100% Java-based, J2EE-compliant; WAS-consistent for easy integration Includes DB2 Express and co-exists with other Express offerings such as WAS Express, Portal Express Easy to Install Easy to Integrate Store Configurator and Change Page editor w/ simple GUI make it easy to update store - no JSP or Java skills required! Intuitive Product Mgmt. Tool lets business users easily manage catalog, pricing etc. Easy to Manage Intuitive wizard-based GUI of marketing, site admin tools makes it easy to manage site, create promotions, campaigns Easy to Learn/Use Competitive feature set delivers capabilities needed to get started plus advanced features to grow into All features offered consistently across all platforms Right Function Extensible, Flexible Upgrades to Professional or Business Edition; credit given for WCE purchase 100% of customized code migrates as is Supports Windows, i Series, Linux/Intel Actually better than MS offering! Everything required for production, staging and site development in one package - a complete end-to-end e-commerce solution for B2C or B2B Complete Solution Affordably Priced At only $20K per processor you get everything you need for production, staging, development at one affordable price point – 34% less than MSCS!

11 WebSphere Commerce – Express V5
WebSphere Commerce – Express V5.6: Delivering Improvement Across the Entire Project Timeline Focusing on “time to value” from installation and deployment through site lifetime… Create Store Look/Feel Install and configure Customize Store Features Manage and Maintain Create Catalog Backend Integration Test and Deploy Faster Install Time WCE portion 50% faster Better Install Screens Improved Messages Store Model Improvements Simpler, easier to understand/customize Catalog Import Utility Speeds catalog creation Uses Excel spreadsheet as input Lite Development Environment 85% faster start-up Memory footprint reduced by 2/3 WBI Modeler Process Maps Crisply lays out all WC processes, reducing customization cost Great tool for partners Improved UI for Business Users 50-75% fewer steps Time on task better by as much as 193% User sat. improved as much as 60%

12 WebSphere Commerce - Express: Quick Install Saves Time and Effort
From shrink-wrap to full installation faster and in fewer steps than the competition Variety of topologies supported “Quick Install” for one server implementation “Custom Install” splits stack out on up to three servers Installation complete. With the new “Quick Install” process in place for Commerce-Express, business partners will find that they can quickly begin to build their customer’s store site. Reducing the time for install and deployment means that business partners can focus more on the customization and integration services that will add more value where the customer will recognize it. Pop in a few CDs and go to lunch – you’ll be ready to publish and begin customizing your store site when you get back.

13 WebSphere Commerce – Express: Express “Starter Store” Streamlines Customization
Delivers all the core capabilities required for a basic B2B or B2C store front – and easily allows more advanced features to be configured if needed WebSphere Commerce-Express contains a specially-designed midmarket-specific store model that speeds site deployment, helping business partners get a customer up and running with their production site in as little as 30 days. The store model can be configured easily from the WS Commerce Accelerator interface, and includes the following capabilities (more advanced features included in WS Commerce-Express can be added later as needed): Catalog Browsing the catalog Catalog search Category list Support for products, items, kits, and bundles Merchandise Associations (Cross-sell, Up-sell, and Accessory) Shoppers Guest or registered shoppers Shopper address book Shopper initiated password reset Checkout Shopping cart Mini-Shopping Cart (Summary) Single/Multiple Ship-To addresses Single/Multiple Shipping methods Quick Checkout Quick Orders Wish List Order History/Status notification of order status update Marketing E-Marketing Spots (Marketing Campaigns) Discounts B2B Requisition Lists Restrict site to pre-registered users only Configurable Options in the Express store include: Internationalization Allow shoppers to select preferred currency Allow shoppers to select preferred language Shopper Profile Request age information (optional) during registration Request gender information (optional) during registration Campaigns Allow shoppers to choose if they would like to receive s about special offers Registration Restrict site to pre-registered shoppers only (remove self-registration feature) Search Allow shoppers to search the catalog using keywords. Note that this option enables or disables both the Simple and Advanced search capabilities. Purchase Quantities Allow shoppers to specify a quantity amount when adding items to the shopping cart Category List Include a category list drop-down box for quicker category navigation in the store header Products with Attributes On a product page, display product attributes in drop-down boxes and allow the shopper to select a combination of attribute values, or simply list all SKUs and indicate what attribute values they have Mini-Shopping Cart Show a mini-shopping cart in the header of each page Quick Order Allow customers to quickly enter an order by entering a list of SKUs Wish List or Requisition List Allow the shopper to save items in a Wish List, that can be ed to friends and relatives, or a Requisition List, that can be used to create orders more quickly in the future Allow shoppers to maintain a “Quick Checkout” profile that can be used to streamline the placement of future orders Shipping Methods Allow different items in the order to be shipped via different shipping methods or restrict all items to be shipped via the same method Shipping Destinations Allow different items in the order to be shipped to different shipping destinations, or restrict all items to be shipped to the same destination WebSphere Commerce Payments Use WebSphere Commerce Payments to handle the order payment processing Order Status Show order status on the Order History page. Order Tracking URL Show tracking URLs on the Order History page.

14 WebSphere Commerce – Express: Complete Set of Powerful, Easy to Use Tools for LOB Users
The WebSphere Commerce Accelerator is an easy-to-use, wizard-based interface that makes it easy for business personnel to manage all aspects of their store.

15 WebSphere Commerce – Express: Store Editing Tools
Giving midmarket business users more control over the look and feel of their e-commerce site Change Store Style Change Store Colors Change Page Text Add Banner In addition to enabling or disabling certain options, there is additional tooling to make site changes quickly and easily with no additional training. Upload Logo Upload a picture (GIF or JPG) to use as the store logo. The store logo appears at the top-left of each page. Change Style Select a layout for the pages, a color scheme, and a banner style for the store. Change Pages Change the text that appears on some of the pages.

16 Targeted Campaigns & Promotions Hello Allison – Welcome Back!
WebSphere Commerce – Express: Marketing, Merchandising and Selling Capabilities Guided Selling Targeted Campaigns & Promotions Hello Allison – Welcome Back! Campaigns Provides a powerful, industry-leading set of features to help you drive customer loyalty and maximize site revenue Here are some of the many capabilities that are built into WebSphere Commerce – Express and ready to be used by midmarket customers. The campaigns and promotions can be customized using the WebSphere Commerce Accelerator component that lets line-of-business users, like the head of marketing or sales, design them with wizard-based tooling. Discounts & Coupons

17 WebSphere Commerce – Express: Marketing, Merchandising and Selling Capabilities
Auctions Packages,Bundles Additional marketing and merchandising features include the ability to create packages, bundles, cross-sells and up-sells – these are known as “merchandising associations” and can be controlled in the Product Management Tool. Another key feature provided is auctions support. Cross-Sell, Up-Sell

18 Product Management Tooling
WebSphere Commerce – Express: Intuitive Catalog and Content Management Tools Empowering business users to create, update and manage online catalog data with full control of features and attributes Product Management Tooling The intuitive Product Management Tool (PMT) is powerful and yet easy to use, making it possible for the catalog and content to be managed without special training.

19 WebSphere Commerce – Express: Additional B2B Capabilities
Member’s Only Login Requisition List The intuitive Product Management Tool (PMT) is powerful and yet easy to use, making it possible for the catalog and content to be managed without special training. Purchase Orders Purchase Order Number

20 WebSphere Commerce – Express: Powerful Analytics
Data Warehouse Technology 87 source extraction tables Over 200 data expansion tables for easy data access Extract, Transform and Load Predefined extractions Custom and enhanced extractions Tight Commerce Accelerator Integration throughout Analytic information accessible from the Business User’s Interface Reporting Framework for Information Delivery 250 Delivered Reports Report Integration Kits for 3rd Party Reports Information Builders Cognos Brio Crystal When its time to see the output, the Integrated Reporting Framework serves up over 250 reports addressing many of the issues business users ask. Additional reports are generated via the framework workbench, and are generated by your IT team as JSPs. For more robust reporting, The Report Integration Kits can be used….

21 WebSphere Commerce–Express Pricing vs. MSCS: 34% Less!
The pricing scenario vs. Microsoft you and your customers have been waiting for! With WebSphere Commerce-Express, IBM provides a packaged solution with production and staging capability, a powerful database and development tools - unlike Microsoft, which requires you to pay more at each step of the way. The result? A complete e-commerce solution for mid-market firms that is both more robust and much more affordable. MSCS pricing for one production server, staging server, developer seat: $28,196 MS Commerce Server is priced at $7K per server, but the solution requires another license for pre-production staging and customers need an SQL license for each processor. The Developer Edition license shows a list price at $499 but again, the SQL license at $4,999 is required and there is a very high annual maintenance rate of $1,600. An MSDN subscription alternative of $2200 is also available. Summary: MSCS Std Edition - $6,999 per CPU (one required each for production and staging) = $13,998 SQL Server $ 5,999 per CPU (one each for production and staging)= $11,998 MS Commerce Server Developer's License (at least one required), either: $499 plus SQL Server 2000 at $4,999 = $5,498 per developer OR (more likely scenario) $2200 MSDN license per developer w/ $1600 annual maint – up front cost = $2,200 Additional Competitive Information vs. MS: MSCS pricing for two production servers, staging servers, developer seats: $56,392 Essentially this scenario is just double cost of the previous scenario) Result: MSCS solution is 40% more expensive than WebSphere Commerce-Express! Microsoft Commerce Server 2002, Standard Edition (MSCS) the primary competitor MS has a reputation for having a lower price - but the MSCS solution is NOT complete and WebSphere Commerce-Express has a significant pricing advantage The truth is, MS will “nickel and dime” midmarket customers – by the time they have what is necessary for a complete solution they have spend much more than they expect! MSCS is based on .Net which is proprietary and locks a customer into one choice WebSphere Commerce-Express is based on WebSphere Application Server which is build on open standards and J2EE-compliant WebSphere Commerce-Express also supports other OS platforms such as Linux-Intel and OS/400 (i Series) in addition to MS Windows Because it is built on .Net, MSCS is not as scalable, reliable or robust as WebSphere Functionally, WS Commerce has the advantage in nearly every important category vs. MSCS Integration, content management, payment and order management, post-sales support, LOB tools, depth of marketing/merchandising features

22 WebSphere Commerce – Express helps Mike Castrucci Chevrolet Start Selling Fast
Up and selling in just five weeks… New site is driving thousands of hits each day “There are just so many things I like about WebSphere Commerce - Express. Everything works just the way it should. With it we’ve been able to create an entirely new sales channel for our company. With V5.6, IBM continues to demonstrate that they are committed to smaller customers like us.” – Bob Ernst, IT Mgr., Mike Castrucci Chevrolet

23 WebSphere Commerce – Express: Summary
Jump-start or expand your online presence with a fast, affordable solution tailored to your needs that can generate immediate business value and rapid ROI Affordable, but Complete - priced 34% less than the leading competitor with “all-in-one” licensing to meet your production, staging, development needs Quickly and Easily Installed - getting you ready to begin creating and customizing your site in as little as one hour - resulting in lower service costs Easy to Implement - “Express” store model and fast-path guide gets you to your production site fast Ready Now, but Built for the Future with the capabilities you need to get started now out-of-the- box and advanced features you can grow into Affordable, but Complete - at only $20K per license, it is priced 40% less than the comparable offering from Microsoft, plus “all-in- one” licensing delivers everything required for production, staging and site development - an outstanding value! Quickly and Easily Installed - getting you ready to begin creating and customizing your site in as little as one hour, faster than Microsoft Commerce Server 2002 and in fewer steps - resulting in lower service costs to you Easy to Implement - after installation, a customer “store” is created - this process is made easier and less costly in terms of services through the “Express” store model and fast-path documentation Ready Now, but Built for the Future with the capabilities you need to get started now out-of-the-box and numerous advanced features built-in that you can grow into Easy to Administer and Manage - with wizard-based tools letting you manage your site effectively without special technical skills - non-technical employees can easily maintain an online catalog and LOB professionals can create and manage marketing campaigns and promotions Reliable and Robust - built on WebSphere, a rock-solid e- business infrastructure that can level the playing field with larger companies Built on Open Standards - unlike Microsoft, which locks customers into one option only, WebSphere Commerce-Express frees your company from proprietary platform restrictions LOB Value Proposition Speaking Points: Up and running fast, ready out-of-the-box with the features you need Installs in 90 minutes with little interaction and less than half the steps of MS Commerce Server 2002 Streamlined store model designed just for mid-market firms help gets your production store up and running quickly Level the playing field with larger firms by starting quickly with the e-commerce basics - then grow on your timetable with a wide variety of advanced features already built-in and ready to be enabled Low Total Cost of Ownership Affordable per processor pricing and flexible terms make this offering attractive even to firms with small IT budgets Streamlined installation process and fast-path documentation helps keep SI service costs under control Availability on Linux means total SW solution costs are lower, solution easier/less costly to maintain and more reliable Full credit given for upgrade purchase towards Professional or Business Edition Easy to use and administer Intuitive Product Management Tool lets non-technical employees easily maintain online catalog Wizard-based tools lets LOB professionals maintain store and drive rapid ROI through targeted marketing initiatives IT Value Proposition Speaking Points: Help protect investment and reduce risk 100% Java-based, J2EE-compliant Commerce-Express is web services enabled and completely consistent in the WebSphere family for easy integration and seamless upgrades Commerce-Express works with the platforms you own and will also support your future platform decisions 100% of customized code can be migrated as is to future versions Bringing business and I/T together Easy-to-use web-based LOB-oriented marketing and administrative tools help empower the business professional Easy to Administer and Manage - with wizard-based tools letting you manage your site effectively without special technical skills Reliable and Robust - built on WebSphere, a rock-solid e-business infrastructure that can level the playing field with larger companies Built on Open Standards, WebSphere Commerce-Express frees your company from proprietary platform restrictions

24 Thank You Business Partner Name, date, contact


26 IBM WebSphere Commerce: The Industry Leader in e-Commerce
Software & Information Industry Association Codie Awards (SIIA) Best eBusiness Solution Best eCommerce Solution Gartner eCommerce Magic Quadrant The Codie Awards are awarded by the Software & Information Industry Association (SIIA) for achievement and vision in the software industry. It is the only peer-recognition awards program of its kind in the industry, providing a unique opportunity for companies to vie for the praise of their competitors. Other awards over the years include ( WebSphere Commerce ADT's 2003 Innovator Awards - E-business Application Development Winner ADTmag April 2003 Digital Union (IBM WebSphere Commerce solution provider) won Best WebSphere e-business solutions honors Beacon Awards February 2003 WebSphere Advisor Excellence Awards WebSphere Advisor Magazine November 2002 Readers' Choice Award for best E-business Integration Middleware Intelligent Enterprise October 2002 Open Source Product Excellence Award LinuxWorld Conference & Expo August 2002 WebSphere Commerce Server and IBM Commerce Integrator Reader's Choice Award for server software and B2B integration January 2002 WebSphere Commerce Suite 5.1 The Best Software Product of the Year 2001 MikroPro Magazine, Finland December 2001 WebSphere Commerce Suite Best Commerce platform Info Exame (IT magazine in Brazil) November 2001 InfoWorld Readers' Choice Award -- E-commerce Product of the Year InfoWorld June 2001 Best of Breed InternetWeek April 2001 Codie award for Best e-commerce software Software and Information Industry Association March 2001 e-Commerce Product of the Year 2000 Datamation February 2001 e-marketplace Infrastructure Award Crossroads January 2001 Technology of the Year: e-commerce Supply Chain Innovator 2000 Awards (Look at SciQuest) ID Systems

27 WebSphere Commerce V5.6 Announcement Summary
Solution Enhancements Designed to integrate people, processes, and information Tied to core offerings B2B Extended Demand Chains B2C MultiChannel Enablement Single Integrated Platform Faster Time to Value / Lower TCO Integrated People, Processes, Info Release Themes Enhancements reflected in all Solutions / offerings Map to capabilities Improved Business User Experience SMB Appeal Tools Business Context Engine Configurable Business Processes IBM Business Integration WebSphere Commerce WC powers solutions built on a single platform that proactively orchestrates the customer experience across all touch points and many business models. WC V5.6 powered by the Business Context Engine Aligns with the IBM strategy of supporting an enterprise's evolution to becoming on demand Financial viability as a company and commitment to sell-side electronic-commerce The release of WC V5.6 brings with it many enhancements - both solutions and overall portfolio capabilities - that aligns with the IBM strategy of supporting an enterprise's evolution to becoming on demand. Beginning with the Solution Enhancements, this release specifically focuses on capabilities designed to integrate people, processes, and information with enhanced solutions that allow: Retailers to integrate multiple channels along the entire consumer purchasing lifecycle Businesses to horizontally integrate with channel partners along the Extended Demand Chain Integrated support multiple for business models (B2C, B2B, Channel Management) architected from a single platform. Common to not only the Solutions but also all elements of the portfolio are capability enhancements. These enhancements delivered through WC V5.6 recognize that today's business climate breeds pressure to accelerate implementation and ROI, while simplifying daily maintenance and operations utilizing a single platform, and open, standards-based, scalable architecture And finally, all these flow down into the single platform benefiting the customer. We represent this single, integrated platform with what we call the Solution Architecture. Powered by the Business Context Engine, let’s begin to take a closer look at the power of this platform on the next slide. Solution Architecture Single, Integrated platform powered by the Business Context Engine Announcement 4/20, GA 4/30

28 WebSphere Commerce Portfolio Pricing
WebSphere Commerce Business $125K / processor WebSphere Commerce Developer Business $25K / seat WebSphere Commerce Professional $80K / processor WebSphere Commerce Developer Professional $15K / seat WebSphere Commerce – $20K / processor (includes maintenance) includes production, staging, one developer edition seat; limited two processor environment additional WebSphere Commerce Developer Express Edition seats available at $3.5K / seat

29 WS Commerce – Express V5.6: Customer View
WebSphere Commerce – Express greatly improves customer time-to-value in v5.6 with faster install, simpler, more streamlined store design, easier to use business tools, catalog import utility, a new “lite” development environment and new B2B features – keeping store deployment costs under control Customer Pains Key Features Can’t afford costly deployment Need for basic B2B support as well as B2C Need for easier to use LOB tools Need quick, easy development environment after partner-handoff Starter stores improved, catalog import utility speeds time to value New B2B starter store with basic PO support Improved usability & visual design of LOB tooling New, lighter/faster dev environment Starter Stores: We have taken huge strides here, completely rewriting our starter store models (which are used as the starting point to develop a WCE store). They are now much smaller and easier to edit and understand. We separated out business process logic from presentation logic so its very clear what does what and where changes are needed to customize something. This alone is huge and has the potential to shave off days/weeks from the store deployment. Our partners had been asking for this for some time. Catalog Import Utility: This is a giant step forward for Express. One of the most complicated, time-consuming stages in the store deployment process is getting a customer's pre-existing product catalog loaded into the WC database. If often takes weeks of time to do this. This utility allows the customer to use an Excel spreadsheet (which many SMB firms use to store their catalog data to begin with) as an easy intermediate step to get the data into Commerce - Express. It is known as a "comma separated values" (CSV) spreadsheet. Again, partners are very excited about this and know that they will be able to pare down the store deployment time for SMB customers with this capability. New B2B Store: We also have created a new starter store just for B2B and included new B2B features such as purchase order payment support. Since our partners tell us about half of SMB customers doing e-commerce sites are B2B, this saves them time and customization effort because we have a store designed just for B2B now. Business User Tools - Improved Interface: We have revamped the WC Accelerator tools to present a much more visually appealing and streamlined environment to our business users. We have combined multi-page screens together and used new menu pull-downs based on the options selected to speed the use of these tools. Business users at the SMB customer will see immediate benefit from these improvements Lite Development Environment: Another major improvement to Express is the new "lite" development environment. The current development environment is difficult to install and takes a long time to load. It is very time-consuming to make edits/changes and then test them. The new environment - which has had substantial early involvement testing from our business partners - is vastly superior and shaves large amounts of time off what is required to do many development tasks for WCE. WC Business Processes for WBI Modeler: We have made a substantial investment in modeling all of WS Commerce - Express into the WBI Modeler (formerly Holosofx) tool. This has resulted in a tremendous tool for partners to use with customers. It provides the partner with a roadmap of all of the business processes that are supported in WCE so it is very clear just how we do various things. From campaigns and promotions to handling taxation and shipping, we've mapped it out entirely in this very visual, easy-to-use environment. Now the partner can sit down with the customer, discuss their specific store needs and requirements and then show them exactly how it is handled in WCE and where customization might be necessary. From Starlight plan… Starlight one-liner: “WebSphere Commerce – Express, IBM’s fast, affordable, complete SMB e-commerce solution, greatly improves customer time-to-value in v5.6 with a simpler, more streamlined store design, easier to use business tools, a fast new “lite” development environment and new B2B features.” SMB Improvements in Starlight: Store model cleanup for improved time-to-value (LI 1023, 1124, 615) Separate B2B store with purchase order support (LI 1064) WCE installation faster, easier (WAS on one CD, better screens, no DOS pop-ups) Improved look/feel of LOB tooling Faster/easier to use “lite” development environment with Cloudscape Separate B2C and B2B starter store; new B2B store inc. purchase order support Benefits Implement an end-to-end solution with an affordable up-front investment Reduce implementation time & effort Easier to use tools for LOB users Customize, extend & grow at your own pace

30 WebSphere Commerce-Express vs. Professional Edition

31 Things Remembered Integrated Solution
Challenge Assure trading partners of merchandise availability Reduce inventory risk by closing the gap between the order acceptance and inventory management processes Business benefits Projected 50% annual increase in conversion rate Anticipated 8-10% rise in average sales transaction value Significant reduction in inventory risk and overhead expenses for Things Remembered and trading partners Ability to attract and maintain broad trading base by ensuring inventory availability Solution A new open standards-based order request solution, delivered as Web services, with the ability to integrate with any standard e-commerce site Utilized the build-to-integrate capabilities of WebSphere Studio, Commerce, Application Server and MQ product families Source: IBM Case Study at Current As Of Date: 10/14/2003 Location: NA – Ohio, USA Industry: Retail Company Background: A division of the Cole National Corporation, Highland Heights, Ohio-based Things Remembered is the largest personalized gift chain in the United States. By engraving personal messages on popular mass-produced items such as pens, clocks, jewelry, picture frames and novelty items, the 4,000-employee Things Remembered creates mementos of treasured relationships and occasions. In addition to 800 stores nationwide, mail order catalogs and a toll-free call-in center, its online store-- as a critical channel for Things Remembered. Business Need: Things Remembered needed to become more responsive to rapid fluctuations in supply and demand, in order to assure its trading partners of merchandise availability and reduce its inventory risk. To do this, it had to close the gap between its order acceptance and inventory management processes and become aware of orders as they were happening, so shelf stock could meet--but not exceed--customer demand. With that capability, the gift distributor would be able to meet the needs of its trading partners by confidently guaranteeing them the immediate inventory availability they demanded. The challenge was to find a scalable, non-proprietary, standardized solution that could communicate instantly with partners' backend business systems while transparently supporting whatever technological platforms they might have in place. Solution: The new order request solution, delivered as Web services, is the latest stage in a series of enhancements and improvements that Things Remembered has made by leveraging IBM products and technologies. Shortly after the company's first e-commerce site went live in 1999, the retailer enhanced its online presence using IBM WebSphere® Commerce, IBM WebSphere Application Server, IBM WebSphere MQ and IBM DB2® Universal Database(tm). Things Remembered developed and deployed its new Web services with help from jStart, a worldwide team of IBM professionals dedicated to helping customers and IBM Business Partners embrace new e-business technologies. The joint development team finished the job in just six weeks. IBM WebSphere Studio Application Developer--an integrated Java(tm) 2 Platform, Enterprise Edition (J2EE) development environment--was their primary tool, while WebSphere Commerce Suite provides an infrastructure for the B2B e-commerce Web site. "The solution resides on WebSphere Application Server, Advanced Edition, running on two IBM ® iSeries(tm) 830 systems," says Fodor. "And using WebSphere Commerce, we're able to support our partners by optimizing the flow of products through the value chain." To make it easy for trading partners to use the new Things Remembered Web service, a client proxy/toolkit is available, which supports Java, .Net, and COM clients. Using the proxy, trading partners can automatically transmit secure purchase requests to the gift retailer using Java, .Net, or COM technology and Simple Object Access Protocol (SOAP)--an industry standard that enables diverse applications and operating systems to communicate across the Web. When the request is received at Things Remembered, the Web service validates the message's secure digital signature, logs the request for non-repudiation purposes and automatically sends an acknowledgement message back to the trading partner, formatted in commerce Extensible Markup Language (cXML), the most widely adopted business-to-business communications protocol. Then, the system passes an asynchronous order request through WebSphere MQ to Things Remembered's backend ERP and fulfillment application. Once the order request process is complete, the solution generates a message using Java Message Service (JMS)--a common interface to a broad variety of messaging protocols and services in support of Java programs--to WebSphere Application Server, which in turn sends a SOAP-based Web services message back to the trading partner, informing them of the results of the processed order. Completely automated and requiring no human intervention, the entire process typically takes as little as 30 seconds. Benefits: Things Remembered expects to garner significant gains from its site, including a 50 percent annual increase in its conversion rate and a rise in average sales transaction value by 8 to 10 percent. And now that Things Remembered has begun offering its order request Web services to select trading partners, Fodor is confident the benefits will be even more impressive. "The order request Web services from IBM will help us respond in real-time to the needs of our customers, significantly reduce our inventory risk and save time and resources for ourselves and our trading partners," he says. "As a result, we will be able to significantly expand our network of trading partners and increase our customer base and sales results, while reducing our overhead expenses on order processing and fulfillment." Furthermore, adds Fodor, its new Web services technology, residing on the WebSphere platform, will enable the retailer to quickly and easily deploy new solutions that will streamline its internal operations and reduce its operating expenses. "We will soon be able to move many of the ongoing transactions between our headquarters and our stores--from traditional telephone and fax-based communication to automated Web services-based processes," he notes. "This will slash turnaround time and greatly reduce our communications expenses. The Web services framework will also support Cole National's ongoing enterprise application integration efforts, enabling it to extend enterprise data and applications in real-time." “Our Web Services solution will improve our ability to deliver responsive, personalized, high-quality service to our customers and trading partners. IBM has strengthened our ability to succeed.” Mark Fodor, Cole National

32 Anaconda Sports Scores With WebSphere Commerce
Challenge Outmoded Web site, not integrated with fulfillment or credit verification, prevented Anaconda from meeting customer demands and caused high maintenance costs. Business Benefits: Projected 100% payback within a year 20% increase in online sales over a 3-month period Elimination of high fixed costs "We were busy answering complaints, handling emergencies and performing wasteful manual tasks to get our orders out. We couldn't satisfy our customers, so they were going elsewhere." - Rob Meyer, Director of Internet Services, Anaconda Sports, Inc. Solution Anaconda Sports scores with responsive, rapidly-deployed IBM e-commerce solution "We were busy answering complaints, handling emergencies and performing wasteful manual tasks to get our orders out. We couldn't satisfy our customers, so they were going elsewhere." --Rob Meyer, Director of Internet Services, Anaconda Sports, Inc. . Challenge Online sporting goods retailer had outgrown its Web site infrastructure, which prevented it from meeting customer demands, caused high maintenance costs and obstructed its focus on core marketing tasks, preventing it from achieving higher profits Why On Demand? Anaconda needed to deploy a resilient hosted e-commerce store site on a variable cost model so it could be more responsive to its customers, reduce its fixed costs and focus on its key marketing activities Solution New hosted e-commerce solution provides Anaconda with tools to create and manage personalized promotions and bandwidth for responding to demand on a variable cost basis, enabling the company to concentrate on its marketing goals Key Benefits 20% increase in sales over a 3-month period and a projected 100% payback of investment in a year or less, with an increase in large-volume orders and ability to scale to support a 67% increase in unique visitors Nothing in the big leagues can match the thrill experienced by a 10-year-old scoring the winning run or goal. Serving the amateur market, sporting goods retailer Anaconda Sports (Anaconda) also knows the satisfaction of winning. Today, the 150-employee company is the largest outfitter of amateur league sports and school district athletic equipment in the United States. Based in Kingston, New York, Anaconda ( sells to wholesalers, mass merchandisers, distributors and the general public. Anaconda generated $50 to $60 million in its latest fiscal year by selling baseball, soccer, basketball and other sporting equipment through its online, sales force and direct-mail channels, and its one brick-and-mortar store in Kingston. Although its Web sales were keeping pace with its financial goals, the company felt that it could have earned even higher profits had it not outgrown its Web site's infrastructure. To begin with, the site--built years ago and hosted by a local company--was not integrated with back-end warehouses or credit verification services. Data entry clerks had to re-enter orders into computers for fulfillment, and then contact each customer individually by phone or to obtain and verify credit card information. Without the ability to securely defend against credit card fraud, Anaconda Sports lost thousands of dollars a year due to fraudulent credit card use. In addition, the site frequently crashed, and the company found that maintaining, fixing and enhancing it was difficult, costly and time-consuming. What's more, it took the company weeks and thousands of dollars to create and implement cross-selling and up-selling campaigns, along with branded stores for their leading customers. Because of these limitations, customers--especially sports leagues, school districts and others with large-volume orders--were heading for other online vendors. "We had lost the ability to meet online customers' demands because we were busy answering complaints, handling emergencies and performing wasteful manual tasks to get our orders out," says Rob Meyer, director of Internet services, Anaconda Sports, Inc. "We couldn't satisfy our customers, so they were going elsewhere. And we didn't have time to focus on our key objective, which was to get more large-volume league customers and become their exclusive suppliers." Anaconda needed a resilient and secure yet affordable e-commerce infrastructure to support its existing Web store so it could respond to the needs of online customers. The company was also eager to replace its high-maintenance Web site with a hosted solution on a variable cost model so that it could reduce its fixed costs and focus on its key marketing objectives. Finally, it needed a set of powerful marketing and catalog management tools designed to make it easy for the business staff to help carry out those objectives. On Demand Benefits Enhanced responsiveness to customers contributes to 20% increase in online sales over a 3-month period 6-week development and implementation cycle; used 70% out-of-the-box functionality of WebSphere Commerce for base solution; 30% custom coding used for integration to core fulfillment systems Projected 100% payback within a year or less due to increased sales and decrease in administrative and IT costs Increase in larger league/school district orders of $5,000 to $10,000 Elimination of high fixed costs with variable rate tied to usage Ability to rapidly create targeted promotions and marketing campaigns in hours and branded Web sites in 2 days or less using WebSphere Commerce Scalability to handle 67% increase in unique visitors Automated selling machine hits its target Working with IBM Premier Business Partner Strategic Computer Solutions (SCS), Inc., the retailer implemented a highly resilient business foundation for its Web store. The new retail system, capable of integrating Anaconda's ordering and administrative processes, provides a new level of customer responsiveness. The new online store integrates with back-end systems and with credit verification and shipping services. It allows the company to respond to its customers' needs automatically and fulfill orders without manual data entry or confirmation. The underlying infrastructure, based on IBM BladeCenter(tm) and Linux, brings a new level of resiliency to support the retail system and customer service levels. Unburdened by complaint calls and reprogramming chores to fix emergencies, staff members can now concentrate on creating new marketing campaigns and upselling and cross-selling opportunities. SCS hosts the site, charging a variable rate based on usage, which keeps the company's expenses down during slow periods. "I knew immediately that the solution was a success because my job changed," says Meyer. "I'm not spending my time berating our IT people, our customer service agents and our Web vendor. I'm focused on developing new relationships with sports organizations, and creating new campaigns to sell more bats, balls and gloves." Building performance and scalability To meet Anaconda's needs for scalability and performance, SCS used IBM WebSphere® Commerce, a scalable end-to-end e-commerce solution based on open standards that delivers support for instantaneous e-commerce transactions. Components include IBM WebSphere Application Server and IBM DB2® Universal Database(tm). IBM TotalStorage® FAStT700 Storage Server protects data assets over the long term. The software resides on a resilient, scalable IBM BladeCenter running both Linux and Windows® to provide maximum performance and scalability for the future. "BladeCenter allows us to accommodate growth simply by adding blades," says Darrin Nelson, vice president, software and services, SCS. "The ability of WebSphere Application Server to handle large-volume demand is also essential to Anaconda's growth strategy. With its multithreading capability, WebSphere Application Server is the foundation for building a reliable Web site that easily scales to peak demands." SCS chose to run DB2 Universal Database on Linux, because of the cost advantage and the improved reliability and scalability. Anaconda's licensing arrangements with its league partners, such as Babe Ruth League, Men's Senior Baseball, and Boys and Girls Clubs, create large amounts of data. "We know that DB2 on Linux is scalable to four terabytes of RAM," says Nelson. "That makes it a perfect match for this type of business." Key Components Software IBM WebSphere Commerce IBM WebSphere Application Server IBM DB2 Universal Database Red Hat Linux Servers IBM BladeCenter IBM TotalStorage FAStT700 Storage Server Business Partners Strategic Computer Solutions, Inc. VeriSign, Inc. "We have the ability to control our destiny now. The tools and the bandwidth we need are available to us on demand, thanks to SCS and IBM." --Rob Meyer Out-of-the-box functionality accelerates development Exceeding even Anaconda's expectations for a rapid implementation, WebSphere Commerce provided the functionality to implement the site in just six weeks, according to Nelson. "Over 70 percent of the site came from the out-of-the-box functionality of WebSphere Commerce," he says. SCS also integrated the commerce engine with Anaconda's legacy inventory, warehouse and fulfillment systems, and with VeriSign for credit card validation and UPS for address validation. One of Anaconda's major goals was to be able to utilize the technology of the site to quickly create new special offers and branded sites for league customers. Using IBM WebSphere Commerce Accelerator, the powerful wizard-based tools framework included with WebSphere Commerce, the company can develop and publish new sites in as few as two days and program special offers, including rules-based discounts, in just hours. "With our former Web environment, it took us three to six weeks and cost thousands of dollars to implement new sites or even just changes. Now, we can collaborate with our marketing staff, focus on creating the most effective promotions and implement them within hours or days with no additional cost to us," says Meyer. Reducing fraudulent transactions Working with IBM business partner VeriSign, Inc., Anaconda used the VeriSign Fraud Protection Services to help securely and efficiently defend against fraud. Since installing the service, Anaconda hasn't lost a single dollar to bad debt. "Few solutions prove their results so quickly. Given the amount of fraud we had before, VeriSign's Fraud Protection Services has paid for itself over and over," says Meyer. Protecting the e-commerce investment with open standards Because WebSphere and DB2 software are based on open standards, Anaconda's new Web site is portable across platforms and can be integrated with other vendors' products. "We didn't want to be locked into a particular vendor's platform and are totally in agreement with IBM's roadmap for e-business on demand," says Meyer. "The best way for us to protect our investment is by using open standards. That's what SCS has done by using IBM components, and that's why we chose them." Right now, Anaconda's e-commerce investment is paying off handsomely. In its first three months of operation, the site posted a 20 percent increase in sales over the same period in the previous year, an amount that portends a high double-digit annual increase. "We project a 100 percent payback on our investment within a year," says Meyer. "What's particularly gratifying is the increase in league and school district customers with large orders. We're seeing $5,000 to $10,000 orders more frequently." The site is also experiencing a 67 percent increase in visitors, from 3,000 per day to 5,000 now. Since data re-entry is no longer necessary and complaints about the Web site's performance have ceased, Anaconda has been able to reassign two full-time personnel to more profitable marketing roles. And the company is also enjoying lower IT costs with a variable rate tied to usage. By hosting and managing the site, SCS has given Anaconda the invaluable ability to focus on expanding its presence in the marketplace. That presence is likely to grow as Anaconda's business staff has more time to focus on marketing efforts and can leverage the built-in, advanced features of WebSphere Commerce, such as campaigns, rules-based discounts and analytics. In the meantime, Anaconda knows it has the capability to drive its growth and meet the demand it creates, and has the tools it needs in WebSphere Commerce. "We have the ability to control our destiny now," says Meyer. "The tools and the bandwidth we need are available to us on demand, thanks to SCS and IBM." For more information Please contact your IBM sales representative or IBM Business Partner. Visit us at: For more information about SCS, Inc., visit: For more information about VeriSign, visit: IBM Contact Info Susan Patzwaldt SWG Customer Reference Program WebSphere | Business Integration Technology Benefits: 6-week development and implementation cycle Scalability to handle 67% increase in unique visitors New hosted e-commerce solution integrated with back-end systems. Based on WebSphere Commerce, WebSphere Application Server and DB2.

33 B2B Direct Sales Portals: Solution Snapshot
B2B Direct Sales Portals provide 24/7 visibility and enhanced productivity that builds on traditional direct sales channels for midmarket Wholesalers B2B Sales Portal Traditional Channels Face-to-face Call center Fax

34 WebSphere Commerce – Express: Delivering Key B2B Direct Sales Portal Capabilities
Structured Processes Requisition lists Dynamic Negotiations Auctions Purchasing and Productivity tools Order Management, Customer Support Targeted marketing to maximize online B2B purchases Product Location Aids Guided Search Parametric Search Automated cross-sell, up-sell Business A Business C Business B B2B Direct Sales Portal THIN AND ERODING MARGINS (we’re helping to reduce your total cost of procurement!) Wholesalers are getting less profit because products being commoditized and need to reduce costs per transaction to keep up (e.g. costs me 10X more to do it offline than online) Increasing selling and general administrative expenses (Paul: where does it come in from a business point of view? Where do the costs come from and how will you reduce them? “how do you diff yourself? Why do customer buy form you today? From your competitors? What are they doing that you’re not? What is it that you’d like to do as a company that you’re not?” WebSphere Commerce provides an inexpensive online channel for selling and transacting New class of buyers today are more savvy - they expect to get this online - will automatically go looking on web - they are looking for multiple ways of doing business – they expect it! Pain of competitors taking your business away…maybe due to new tehcnology available… Difficulty of measuring effectiveness of marketing campaigns WC Analyzer included in WebSphere Commerce can track effectiveness of online campaigns and promotions and give you the insight to quickly make adjustments Decreasing customer satisfaction Personalization within WebSphere Commerce allows you to personalize the web experience and increase satisfaction Difficulty adapting to changing customer habits WC Analyzer provides analytics that allow you to track online purchasing patterns to adapt to consumer habits in real time Increased costs of catalogs and direct mail pieces and increased cost of mailing… (combine w/ the notion of not knowing how effective their mktg campaigns… note: this is a later savings, not sold as up front…) e-Commerce sites can replace catalogs and s with links to that site can replace direct mail pieces. Help me find the groups that are NOT price-sensitive… fine-tune the pricing to SCM CUSTOMER VISBILITY! Do I have the right inventory in place? How am I doing in sales? Need headlights, analytics (what it does does is you’ve given visibility to customers because they know what you have ATP-type (make sure its defined) support helps a lot here HR People costs are going up – WCE helps here by making them more efficient, reducing need for more people; self-service helps as well

35 So…just what is keeping you up at night?
Increasing competitive pressures Margins – thin and eroding Unsettled economy (picking up again?) Unable to quickly react to market changes Customer expectations increasing Distributors and resellers find us hard to do business with Current site hard to maintain & can’t meet emerging needs Complex, heterogeneous IT environment Can’t integrate with and leverage key backend systems Limited IT, business staff

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