IBM ECM Regional UserNets – Spring 2012 How ECM Enables "Smarter Commerce" by Reducing the Cost, Improving the Efficiency and Enhancing the Quality of an Organization's Buy, Market, Sell And Service Activities IBM ECM Regional UserNets – Spring 2012

We have entered the age of the empowered customer Customers now have unlimited access to information and can instantly share it with the world Social networking and mobile commerce have dramatically changed the dynamic between buyer and seller Customer expectations of service, price and delivery are soaring This is changing the entire way products are sourced, manufactured and distributed—and making business more complex than ever 250 million Number of tweets sent via Twitter each day 75% Percentage of people who believe companies don’t tell the truth in advertisements $93 billion Amount in sales missed due to out of stock inventory Sources:, Techcrunch Oct 2011, Yankelovich, Evolution of Advertising and Media, 5th Annual Store Systems Study, IHL Group and RIS News, 2008

3 These disruptive forces ripple from the customer through the enterprise and across entire industries “The consumer is using new channels to perceive value, and associated pricing implications.“ Consumer Products CEO, United States Individuals The connected consumer The networked workforce The empowered citizen "Profits will shift away from analog distribution to digital distribution; we will see increased margins in digital distribution and increased international distribution.“ Media and Entertainment CEO, United States Enterprises Evolved business models Optimized digital operations Connected enterprise Industries Value migration Value chain redefinition Fragmentation “Disintermediation of clients by smaller niche players (such as mobile players) is cause for concern.“ Financial Markets CEO, Canada Source: IBV Analysis

Power has shifted — compressing margins and changing paradigms In this new era, businesses need to: Understand and anticipate customer behavior and needs based on customer insights across all channels Adapt sourcing and procurement based on customer demand and optimize supplier interactions across extended value chains Market, sell and fulfill the right product and service at the right price, time and place Service customers flawlessly, predict and drive customer loyalty

We call the path forward Smarter Commerce 5 We call the path forward Smarter Commerce Places the customer at the center Maximizes insight Capitalizes on social and mobile Drives growth Synchronizes your entire value chain Increases margins Improves collaboration and visibility

Customer Value Strategy Customer & Partner Engagement Smarter Commerce focuses on three dimensions centered around the customer Customer Value Strategy Customer Insight In turn, you must re-think how your customers define value, and the changes you must make to your value chain so you can deliver exactly what your customers want - profitably In today’s world of instant business, you need deep insights, in real-time that you can turn into immediate action Customer & Partner Engagement You need an approach that allows you to more effectively connect, collaborate, conduct commerce and create a differentiated customer experience …increasing the value companies generate for their customers and partners in a rapidly changing digital world

Smarter Commerce can help transform every phase of the commerce cycle Strategy Insight Engagement Market Buy Service Sell 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

IBM’s integrated portfolio for Smarter Commerce VALUE CHAIN STRATEGY AND SERVICES Innovation and business value Innovating and aligning business models to drive value to the customer Market and customer mgmt Aligning sales, marketing and operations to engage with customers Operating and organization models Designing operations, supply chain and the organization model to deliver customer value CORE BUSINESS SOLUTIONS Core Business Processes Buy Market Sell Service Supplier Integration & Management Supply Chain Management Payments and Settlements Strategic Supply Management Customer Awareness & Analytics Social Media Marketing Cross-channel Campaign Management Digital Marketing Optimization Pricing, Promotion and Assortment Optimization Cross-channel Selling Order Management & Fulfillment Customer Integration & Collaboration Store Solutions Payments & Settlements Delivery, Service, & Support Customer Self-Service Case Management Advanced Analytics Customer Analytics | Operational Analytics | Threat and Fraud Analytics IBM SmartCloud and Workload Optimized Systems (Z-Enterprise, Power, X, Storage and Systems Software) Delivering agility, integration and automation to drive relevant business outcomes

IBM’s integrated portfolio for Smarter Commerce VALUE CHAIN STRATEGY AND SERVICES CORE BUSINESS SOLUTIONS BUY MARKET SELL SERVICE Intelligent and optimized supply chain strategies in anticipation of demand Personalized and relevant messages, promotions and pricing with unified multi-channel marketing Customers and partners buy what they want, when and where Anticipates behavior and delivers flawless customer service Advanced Analytics IBM SmartCloud and Workload Optimized Systems * 9

Buy Market Sell Service CUSTOMER VALUE STRATEGY CORE BUSINESS SOLUTIONS Buy Market Sell Service Emptoris Contract Management Emptoris Spend Analysis Sourcing Contract Management Supplier Lifecycle Management Category Compliance Management Unica Resource Mgmt Campaign Mgmt Marketing execution Performance Analysis WebSphere Commerce Cross-Channel Selling Customer-centric Shopping Experience B2C/B2B Storefronts Precision Marketing Sterling Commerce Delivery & service Scheduling Reverse Logistics Sterling Commerce Order Management Configuration, Pricing, Quoting Multi-vendor catalog Warehouse Management Transportation Management Supply Chain Visibility B2B Integration Sterling Commerce Transportation Management Supply Chain Visibility B2B Integration Supplier Portal Vendor Compliance Coremetrics Analytics & Reporting Segmentation Search Optimization Unica Service messaging Notifications Retail Store Solutions Retail POS Solutions Self-Service Portal/Kiosk POS Applications DemandTec Price, Promotion, Merchandising Marketing Analytics ILOG Supply Chain Product Optimization Inventory Optimization ILOG Supply Chain Network Optimization Transportation Optimization Content Analytics Accounts Payable Automation ERP Integration Statement Presentment & Archiving Customer “On-boarding” Product, Policy & Procedure Information Case Management Customer Self Service Product, Policy & Procedure Info CUSTOMER INSIGHT SOLUTIONS 10

The Role of Enterprise Content Management Before: raw materials are delivered to a factory, you purchase a carton of milk, take possession of a new home, decide what type of dishwasher is best, establish a retirement account, purchase life insurance, choose an investment, the loan for your car is approved, you get the answer from customer service… Someone: signed a supplier agreement, approved and invoice, prepared mortgage documents, wrote a user’s manual, reviewed loan documents, created marketing collateral, revised and published customer support information. Without the proper documents, forms, correspondence and content, and the processes to manage them, these commerce transactions – buy, market, sell and service would not happen. Documents define business agreements and guide daily operations. Business process management brings greater efficiency to these transactions. Content analytics provides rapid insight into the customer needs, concerns and opinions. All of these capabilities enable smarter commerce. Content is essential to commerce. 11

Opening Questions to Consider How efficiently do you manage supplier relationships and communications? Do your lines of business have a “single view of supplier”? How efficiently does product information move from supplier to buyer to channel to customer? Do your lines of business and customers have a “single view of product/service”? How easy is it to “become a customer”? How do you resolve complex customer service requests? Do your lines of business have a “single view of customer”? What additional customer detail and insight can you obtain from email, call logs, voice to text, chats, product reviews & blogs?

IBM ECM Enables All Domains of Smarter Commerce Contracts & supporting information Supplier communications Accounts payable Product information ERP integration Product/service Information Digital Asset Management “Voice of the customer” Buy Market Sourcing, controlling and procurement of goods and services Targeted and personalized marketing across all customer interactions Servicing customer needs across all interaction channels Customer Selling and fulfillment of products and services across all channels Service Sell ERP integration CRM integration “Voice of the customer” Customer correspondence Statements, bills, confirmations Product/service policy & procedure information CRM integration Product Information Customer “On-boarding” Digital Asset Management Statements, bills, confirmations Product/service policy & procedure information 13

Where & How IBM ECM Can Positively Impact Key Commerce Domains Buy Supplier Lifecycle Management Buy-Side Contract Management Accounts Payable Market Product, Service, Policy & Procedures Digital Asset Management Voice of the Customer Sell Customer “On-Boarding” Complex Corporate Sales Statements, Bills & Confirmations Service Complex Customer Care “Single View” of Customer

Buy Benefits IBM ECM Capabilities to Support Key Commerce Domains Supplier Lifecycle Management Buy-Side Contract Management Accounts Payable Capture ■ ERP Integration Email Management Imaging/Content Management Case Management MSFT Office Integration Records & Retention Management Partner Solutions Benefits Accelerate supplier evaluation & selection process Enable single, secure point of access for all relevant supplier content, communications and supporting information Retain supplier content as corporate record Accelerate contract development, negotiation and approval Enable secure enterprise access to contract and supporting information Retain contract and supporting information as corporate record Reduce cost, reduce errors, manage cash flow, eliminate late payment penalties, respond to audit requests Reduce storage costs Retain invoices and supporting information as corporate record dsfsdfsdfdsf

Market Benefits IBM ECM Capabilities to Support Key Commerce Domains Product, Service, Policy & Procedures Digital Asset Management Voice of the Customer Content Analytics ■ MSFT Office Integration SharePoint Integration Content Management Case Management Records & Retention Management Partner Solutions Benefits Enable formal process for creation, review, approval and publishing Single source for collateral & supporting information Publish consistent information across channels Retain per compliance requirements Effectively organize, manage and secure media and brand assets Single source for digital assets Enable multi-channel distribution of digital assets Obtain a more detailed and accurate understanding of market and customer needs Plan and execute more effective campaigns, promotions, product positioning, sales tactics 16

Sell Benefits IBM ECM Capabilities to Support Key Commerce Domains Product, Service, Policy & Procedures Customer “On-Boarding” Complex Corporate Sales Statements, Bills & Confirmations Capture ■ Email management MSFT Office Integration Content Management Case Management CRM integration Content Manager OnDemand Records & Retention Management Partner Solutions Benefits Single source for collateral & supporting information Publish consistent information across channels Efficiently capture customer information at POS Retain as corporate record Quickly initiate provisioning process Accelerate contract development, negotiation and approval Enable secure enterprise access to contract & supporting information Reduce/eliminate printing & postal costs Archive high-volumes of customer receipts Retain as records dsfsdfsdfdsf

Service Benefits IBM ECM Capabilities to Support Key Commerce Domains Product, Service, Policy & Procedures Complex Customer Care Voice of the Customer “Single View” of Customer Capture ■ Email management MSFT Office Integration Content Analytics Imaging/Content Management CRM integration ERP Integration Case Management Content Manager OnDemand Records & Retention Management Partner Solutions Benefits Single source for collateral & supporting information Publish consistent information across channels Improve self-service Complete context to understand customer issues, collaborate and facilitate resolution Record and retain key decisions, actions and communications Exploit insight obtained from email, call logs chats and voice to text to improve service Identify FAQs Immediate, secure access to relevant customer content & communications Enable self service Reduce cost of customer care

ECM Applied to the Key Entities of Commerce Supplier – manage the lifecycle of content and content-specific processes that: define the business relationship, specify the goods/services exchanged, record evidence of transactions and communications Product/Service – manage the lifecycle of content and content-specific processes that describe or document: the product/service, usage, technical details, components, warranties, guarantees, maintenance, repair and operations Customer – manage the lifecycle of content and content-specific processes that: define the business relationship, specify the goods/services exchanged, record evidence of transactions and communications, facilitate efficient resolution of complex customer service and support issues Analyze customer correspondence and communications to rapidly identify and explore trends, patterns, and statistically relevant facts to obtain a more detailed and accurate understanding of “voice of the customer” “I have a complaint about the quality of the product that I bought last week!”

IBM ECM Partners Have Solutions for All Domains of Smarter Commerce Adaptive Supplier Management Digital Asset Management Retail Vendor Management Rapid Analytics for Hotels Enterprise Contracts Buy Market Text Analytics Suite Accounts Payable Sourcing, controlling and procurement of goods and services Targeted and personalized marketing across all customer interactions Managed Pay Claims Management Underwriting Servicing customer needs across all interaction channels Customer Selling and fulfillment of products and services across all channels Complaints & Appeals Service Sell ePresentment Mobile Case Manager Container Billing Policy Owners Services Credit Origination eResolve for Mortgage Banking Paperless Lending Complaint & Quality Management Store Communications Client Service for Wealth Management Retail Banking Transactions Online Brokerage Account Administration Unsecured Lending Framework Correspondence Tracking and Management Dealer Relations Portal for Discrete Manufacturers Customer Service via an Automated Email Response 20 www-304.ibm.com/sales/gss/download/industry_solutions_catalog/CrossIndustrySolutions.do?industry=ecm IBM Internal Use Only 20

http://public.dhe.ibm.com/common/ssi/ecm/en/zzs03023usen/ZZS03023USEN.PDF 21 IBM Internal Use Only

Supplemental Slides

What is unique about IBM’s Smarter Commerce? 2424 What is unique about IBM’s Smarter Commerce? Industry Leading Unmatched breadth and depth of market leading products and services across the commerce cycle to meet your needs Suppliers Influencers Partners Customers IBM Smarter Commerce Comprehensive yet Flexible Flexibility to start in the area your business is focused leveraging your existing investments and delivering value for your business Proven IBM is a proven partner for your success with experience in driving measurable business outcomes across all aspects of the commerce cycle

Getting started and accelerating your Smarter Commerce journey Has your business model changed? Is customer information driving your business? Are customer needs aligned to the business operations? How compelling is your customer experience? Can you respond to changes in the market or demand? Learn more about IBM Business Value Accelerator services to help you get started on your Smarter Commerce journey 25 25

IBM is the right partner for Smarter Commerce 100 years of experience making the world work better through the use of technology Deep skills to enhance, extend, and re-define commerce in the age of the empowered customer Acting on Customer Insight Evolving your Customer Value Strategy Optimizing Customer & Partner Engagement $3 billion invested since 2010 to create a truly smarter approach to commerce New consulting and system integration practice with over a thousand dedicated experts Expertise in over 20 industries to help create a solution customized for your specific needs Over 2,000 of the world’s top brands rely on IBM to improve their business insight and execution

High Value solutions spanning across multiple industries CAPTURE ACTIVATE SOCIALIZE ANALYZE GOVERN Document Imaging and Advanced Document Capture Enterprise Platform Services Enterprise Report Management Asset Lifecycle Mgmt Accounts Payable eBilling & Electronic Document Delivery Contract Management Advanced case mgmt Customer Service / Experience Mgmt Account Opening & Management Courts and Justice Claims Processing & Optimization Benefits Adjudication Insurance Underwriting Loan Origination / Mortgage Processing Social content mgmt Human Capital Management Education Intervention Management Content Search and Analytics Voice of the Customer Patient Diagnostics & Care Coordination Government and Crime Intelligence Enterprise Fraud Management Defensible Disposal & Value Based Archiving Retention & Records Management eDiscovery Content at Rest = Cost, Content in Motion = Value IBM ECM Foundational Solutions for IT. Compliance & Legal Buyers IBM ECM Cross-Industry Solutions targeting LOB & New Buyers IBM ECM Industry Specific Solutions targeting LOB and New Buyers