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Selling WebSphere Commerce for Business Partners

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1 Selling WebSphere Commerce for Business Partners
Good morning and thanks for having me. My name is Lisa Sisco, and I have had the privilege of being with IBM for the past 16 years, a great deal of which I spent in the WebSphere Commerce selling space. I am currently on Gary Spector’s North American Pillar team and my role is to help our sellers and our partners with enablement on the WebSphere Commerce platform, and where I can, to assist you in winning WebSphere Commerce deals. As a side note, my team also has pillar specialists available for Order Management, CPQ and our BVA (or Business Value Assesments) – so I encourage you to reach out to me and to members of my team whenever you need our help. July, 2012 Lisa Sisco NA Sales, Commerce Pillar

2 Why Sell WebSphere Commerce? How to start a Dialogue
Agenda Why Sell WebSphere Commerce? How to start a Dialogue Who to Call On Business Value Selling What is WebSphere Commerce? Where should you be selling it? GB Industry Focused Solutions How is it priced? PPA v Market Pricing Who can help? The goal of the call today is to get very tactical in selling WebSphere Commerce. I want to share with you some things that I have learned over the last 16 years selling this product. We will talk about why it’s a great product for you to focus on selling and how to start a business-centered dialogue with your customer to help them see the value in a WebSphere Commerce investment. I will than move on to the product, including some of the features that will help your customers realize a great total cost of ownership, talk about some industries to focus on, take a look at how the product is priced, what you want to consider in an RFP process, how to determine when to engage a partner and who to choose, talk about your competition and then of course, talk about where you can go should you need additional help.

3 Why sell WebSphere Commerce in 2012?
IBM is #1 in this space – and we ARE NOT more expensive Average WC REV - $250K-1M - ROI payback – often less than 6 months with ROI % within a year Increase your 2012 WS and WC Pipeline WC sells well even in competitive shops You’ll make friends – in IT and line of business Cross-sell OM, CPQ, iLog, Coremetrics,… etc Help your Customers Make Money and Upgrade their Brand! Cross-Channel The majority of online consumers are cross-channel shoppers 75% believe that companies don’t tell the truth in advertising By 2015 analysts will be saying mCommerce more than eCommerce 80% of CEOs believe their brand delivers a superior customer experience – 8% of consumers agree Get in the Conversation Social Media is here to stay - Consumer content as the #1 aid to a buying decision, cited by 91% of respondents So – with all you have to sell in your bag of tricks, why focus on WebSphere Commerce? Well – first – WebSphere Commerce is #1 in this space for both BtB and BtC eCommerce solutions… all the analysts from Gartner to Forrester to IDC agree. And – while our competitors may try and say IBM is too expensive, we have proven over and over that we are very price competitive and will be very aggressive on price to help you win key deals. We may be “the Cadillac” but if you can drive a Cadillac for the price of a Chevy, most people would agree that is a great thing. Second, new WebSphere Commerce sales are big deals with great ROI. Just the software alone tends to average $250,000 and if you look at a 3-year Enterprise Capped Deal for your customer (that is a way to sell capacity that may be needed in the future in advance in exchange for a discount from IBM), you could easily reach a million. So – I just told you WebSphere Commerce was a Chevy for the price of a Cadillac – but what makes a real difference to your customers is that their investment grows and pays for itself is both cost savings and increased revenue. One thing I encourage you to do, at the very beginning of a sale, is what I call Value Selling. That is, understand what on-line revenues look like for your client today. Understand what kinds of costs they are incurring to get to that current revenue – people to custom build, creative agencies to redesign, technology to support – and then ask your clients what type of growth they would like to see in the future. This makes a great starting conversation – not at all technology focused, and you’ll be able to use the data you collect to help them justify their investment with you. In my experience, it is very common for our customers to have total investment in SW and Services for a WebSphere Commerce purchase paid back in full in a matter of months. Many of my clients have seen first-year returns of 200% and I had one client last year that had a 500% pay back in less than a year. The next reason you should care about selling WebSphere Commerce is that even in shops where customers love Microsoft or love Oracle or love SAP, they still want to buy WebSphere Commerce from you. We have a long history of being the first IBM software in a competitively installed account. We get in, demonstrate great success, huge ROIs, and then customers like HHGregg, Bauch and Loumb and Delta Faucet come back to us quarter after quarter to find out what else we have on the truck. When you make your customer successful, you make friends and then you have the opportunity to cross-sell products like Order Management, Sterling Configurator, Transportation Management, iLog, or something else your company specializes in. Finally, technology changes fast. There are a lot of competitors out there, guys like Hybris, Demandware and Oracle/ATG that would like to take money out of your pocket. The truth is, you get what you pay for and IBM isn’t a fly-by-night solution. We are not only #1 … we have been at the top for 16 years. …And with the fast pace of change in not just technology, but also in consumer dynamics, customers will know they can count on IBM to help them navigate the challenges of things like Cross-channel and social media. And, these “pretty –boy of the year” companies that seem to pop up fast and die off just as fast, can’t begin to match the R&D and investments or the long history of learning or the tremendous global support that IBM can provide. Some competitors have been out there trying to say IBM is heavy technology or that we can’t be nimble or that we’ve seen our brightest days. Really, that’s all they can say to try and compete with us and nothing can be farther from the truth. Sources: Forrester, eMarketer

4 The “consumerization of technology” is changing the way consumers interact, obtain information, purchase items and impact your brand 28.7% of the world is online 5.3 billion mobile subscriptions WW U.S. mobile commerce reaches $3.4 billion 1.96 billion people are online today and this number is estimated to reach 2.2 billion by 2013 940 million subscriptions to 3G services Global mobile commerce sales expected to reach $163 billion by 2015 So – let’s talk about the market space. You’ve seen charts like this, I’m sure. When I started at IBM, 16 years ago, my first assignment was to get on an airplane and fly from city to city to teach IBMers how to use Lotus Notes and the Internet. IBMers were amazed by map quest because they didn’t have to call ahead to have an administrator fax over directions to their meetings. I tell my kids, I could not have decided what I wanted to do for a living when I was in HS, or college for that matter, because eCommerce didn’t exist. The point of this slide for your customers is that the digital world is here to stay and the pace of change by which new generations are adopting this change is astounding. Businesses have been and will continue to be winners or losers in how they adopt and leverage these changes. Picking the right partners – IBM and all of you - to help them be and stay in the winning column is critical. We will have their backs and help ensure that they get in the game and stay leading in the game for a decade or more to come. 77% are social media members 93% have read customer reviews online 687 million active, 250 million via mobile On average follow 6 retailers 83% of holiday shoppers were influenced by customer reviews A ‘Facebook Like’ from a friend carries the same weight as 100 positive reviews from strangers

5 Who to call on… - By 2017 CMOs will Spend More on Technology than CIOs*
WebSphere Commerce is the Customer Interaction Platform Primary: Line of Business (LOB) Sales, Operations, Marketing, Channels CMO, COO, CFO…even CEO! VPs, Directors, Managers Make it a business decision! This is one time that you can feel good about making prospecting calls – because you have the ability through WebSphere Commerce to turn your customers into rock stars. In a global recession, with everyone trying to cut back and save, your Chief Marketing Officer or VP of sales or even your Chief Technology Officer can go to the CEO and say “I know how to make you more money.” In these times, that’s music to a CEOs ears. You’ll turn your client contacts into Rock Stars and they will come back to you year after year to buy more from you and from IBM. There is a recent study I want to draw your attention to from Gartner – and the link to it is here. I encourage you to read this article but the bottom line is this: By 2017 the CMO (Chief Marketing Officer) will spend more on IT than the CIO After so many years of watching businesses put up eCommerce sites, I can almost always tell which ones are going to be successful and which ones will flounder. The biggest difference, in my opinion, is that when companies work together across BOTH marketing and IT and have formed a strong relationship to define what competitive advantages they will need to have to drive business value and than identifying the best technology to get them there, they will have a great deal of success. As a trusted advisor, you are in a unique position to help them understand the power of forming this alliance and to help them in defining a strategic roadmap focusing on real business differentiators to help them get there. Secondary: Information Technology (IT) CIO, IT Director, IT Manager, etc. Use references from other IT peers that show how IT can lead in addressing eCommerce issues Demonstrate how CIO as the key budget holder can make LOB successful – and increase IT’s value to Sales *Source: Gartner Webinar:

6 To Start a Dialogue: Understand the Importance of an E-commerce Decision
E-commerce is not just a Web site. It is a strategic, enterprise-wide initiative with long-term business implications. IBM’s WebSphere Commerce Solution: Can cost-effectively grow with your business Lets you consolidate all your e-commerce initiatives on a single infrastructure Enables seamless processes across channels and touchpoints, back-end systems (i.e. SAP) and those of your customers, suppliers and partners Empowers your business users to do their jobs without IT reliance while providing real time information Frees your IT staff to focus on differentiation and innovation Minimizes risk and protects your investments and provides opportunity for gains in efficiency for Customer Service I have been getting a lot of calls asking how to handle Objections in prospecting – where the customer says “we have a portal or we are building something with a content management system or we are working with a creative agency.” These objections can be over come by calling on the right people and by focusing on Business Value and Increasing Customer Revenue. You can use this chart to help them understand… “…many older web sites were developed as stand-alone selling channels that cannot accommodate the growing demand today for multi-channel sales and service. We’ve gone beyond just selling something online, to selling and providing customer service across multiple channels…” eRetailer “Companies that have home-grown systems are doing everything they can to ditch them” Forrester 6

7 Start Calling about E-Commerce
Business Issue Retail: “As retailers continue to expand their brand to capture the smarter consumer and increase loyalty, many retailers (and their sites) are not ready to meet the smarter consumer’s “cross-channel” expectations like personalized promotions & content, a quick and easy checkout process, and a highly responsive customer centric site all of which improve customer loyalty” Ask: In the US, online sales increased by 17% last year. Is this market growth consistent with your company growth? Business Issue BtB: “BtB sites are starting to resemble BtC sites. Consumers don’t want an inferior experience in the office. They expect an Amazon-like experience at work too” Ask: The trend is for BtB sites to act more like BtC sites. Early winners stand to gain big. What is your business doing to capitalize on this customer demand? I put some more ideas for prospecting calls and initial conversations on this slide. They get easier each time you do one and once you have an eCommerce sale or three under your belt, your confidence will increase as well. I put just a couple more examples on this slide – easy, starter conversations you can have with your customers in the BtC/Retail and BtB space. Ask them what their plans are, what Utopia would look like for them in the world of on-line selling. They will tell you and you’ll have a whole team behind you to help you if you get a live one and don’t know where to go. I will tell you, it can take years to learn this product inside out. There is a lot there. But no one expects that from you. We just want you to have some initial conversations and then let us know when something seems promising – we will jump right in and have your back – and hopefully IBM will win, the customer will win, and you’ll make a lot of money and have some fun in the process. Persuasive statement: “IBM and our partners can help grow your online revenue by leveraging Social networking sites to extend your brand’s reach Mobile device as a new sales channel Advanced marketing capabilities to attract and retain shoppers within your brand / site to increase sales Powerful tools for Marketers and Merchandisers to sell online – not just take orders – to improve wallet-share

8 Customer Benefits of the WebSphere Commerce Solution
25% reduction in logistics and customer service expenses – “WebSphere Commerce enables us to manage every aspect of our business from a product perspective, creating a better customer experience while addressing the exact needs of each and every customer.” – Frank Fink-Jensen, e-business Manager, Nilfisk-ALTO 37% increase in seller productivity - “We knew IBM delivered on its commitments and that they’d be there over the long haul. In the end, it was a question of longevity, integrity and competency—and IBM has all of those elements. Our flexibility means we adapt quickly to our customers’ needs, so they can compete better. We see on demand technology as essential to that equation.” – Bill Chapman, Chief Technology Officer, Avnet Inc. Product information is now delivered in 50% less time, annual sales increased by 3.5% due to earlier product awareness – “To minimize redundant activities across our organization and speed time to production for our e-business initiatives, it was critical that our solution could support the existing product introduction cycles and offer new processes to enrich content for effective Web presentation.” - Eric Keil, director of e-business, Panasonic. Can now launch a new site in about one week, increased competitive advantage - “Our upgrade was flawless as we migrated 15 e-commerce sites in less than 20 weeks…The benchmark tests proved that the stability under load and the performance increase was very impressive…” -- Fred H. Lerner, CEO Ritz Interactive. Automated support for diverse policies, contracts, buyer roles on a single platform - "The new WebSphere Commerce software will enable us to deliver top performance, enhance our real-time inventory and [contract-based] pricing capabilities, and satisfy the future performance and feature needs of our customers." - Lisa Hamblet, VP, B2B e-commerce, Staples And remember – you have real value to offer. If you were running a business, in one of the worst economic climates in history, how would you like to identify a solution that would help you: Reduce Expenses Increase Productivity Increase Your Competitive Advantage Increase Your Sales And Increase Your time Into New Markets? Use some of the above quotes from customers who used WebSphere Commerce to do just that.

9 Product Selling Value Selling…. For You For IBM For the Customer
Accelerates Sales Cycle by 30% - 40% * Reduces Discounting by % * Increases Selling Effectiveness Selling Commerce is about Relationship Become the Trusted Advisor Before we move on to Product – I want to remind you once again about the importance of Value selling – which is the opposite of product selling – with the added benefit that you don’t need to be a product expert to do it. When you sell value vs product, you make more money because you need to discount less, you accelerate the sales cycle because your customer understands what they stand to gain by implementing your solution and you become their trusted advisor – because you help them identify the success they can have with their eCommerce solution – and they can than take that success up their management chain and to their peers to start selling internally – you’ve made them look good! * Alinean Research

10 What is WebSphere Commerce?
…. the industry leading, sell-side eCommerce application that accelerates the automation and integration of cross-channel marketing and sales processes, helping companies of all sizes become on demand businesses…. Supports all of a company's business models -- whether B2C, B2B or both -- on a single platform e-Retail B2B Direct B2B Indirect Provides hundreds of out-of-the-box capabilities and accelerates the implementation of new ones So, what is WebSphere Commerce? We like to call it a customer interaction platform. In tech speak - it is built on a strong foundation with scalable tools like the WebSphere Application Server. It comes with the DB2 database out of the box, although customers can also use an Oracle database if they prefer. For your customer speak - it is meant to allow a customer to do business with a company over the web, or on any device they choose.. Kiosk, tablet, mobile phone. It integrates well to things like Point of Sale systems, Call Centers, and Order Management. It can host multiple sites within a single instance of the software, such as international sites or multiple brands within a company. There are even starter stores, which are sample stores that come out of the box, to allow a customer to host sites for their distributors or dealers. This is the model Mazda uses to host sites for their independent dealers and it is the technology Avon will soon use to allow independent Avon representatives to each have their own eCommerce site. Enables rich, contextual customer experience across channels Fully exploits the power of the underlying platform for maximum performance, scalability and adaptability

11 IBM WebSphere Commerce Highlights
Precision Marketing Automated, one-to-one marketing based on preference and behavior across sales channels Mobile Commerce Support for mobile shopping, marketing messages, order status & list Social Commerce Supports easy integration via sMash for Ratings & Reviews, Blogs, Photos and Profiles Management Center Business tools for Dialog Builder, Segmentation & Marketing Spots Extended Sites Multiple storefronts on a single instance Country The next chart highlights just a few of the “cool” features and competitive advantages of WebSphere Commerce. Precision Marketing lets line of business users create events and campaigns to target one to one and one to many based on criteria like “did they visit a store but abandon the shopping cart” or did they come to us from a competitors site – if so let’s give them a better price than our competition sells for. Management Center is the tool marketing uses, not just to build these powerful campaigns, but they can also do things like manage the catalog, change the look and feel of the site, they can even create a new extended site … without having to depend on IT. Of course it goes without saying, since we are IBM, our international capabilities are by far the strongest in the market with support for 16 languages, multi-currency, even specific sample stores for Brazil and China. We have patented search engine optimization technology to make sure your customers end up at the top of unpaid Google searches, saving them money on paid positioning and increasing sales because they show up first to their customers. And our on-site, faceted search is not only out of the box in WebSphere Commerce but it is tied in with our Management Center tooling to allow business users to do “searchandising” using the same set of tools they use to merchandise and create campaigns. None of our competitors can say that. Finally, in the age of the Empowered Consumer and the younger demographic being all about mobile and social media, you can count on IBM WebSphere Commerce to have incredible features for mobile and social now and to keep ahead of the curve by releasing new capabilities in our enhancement packs about 3 times each year which are free to download and use for all existing WebSphere Commerce customers under their Software Subscription and Support. Our competitors can’t touch that either. Country Dialog Builder Business User Shopper Country Unprecedented Scale & Globalization Underlying software stack of WAS runs largest sites in the world like eBAY Brand Segment Brand Segment Brand Segment WebSphere Commerce Customer Interaction Platform Search Integrated search with patented SEO technology

12 Why WebSphere Commerce?
Product Mature & market leading years proven experience Comprehensive capability & configurable best processes Unmatched breadth and depth of integration Unlimited customizability & extensibility Presence Recognized market leadership, customers Dedication to WebSphere -- $1B investment annually with $3b in acquisitions around Smarter Commerce Unmatched global reach and ability to scale One of the world’s most dependable IT brands – not likely to be acquired Professionals Significant industry and domain expertise In-depth understanding of technology Nearly 200 Business Partners worldwide This chart speaks for itself – but I kept it here so you have these points at hand – WebSphere Commerce is and has been the #1 product in this space – and it is only getting stronger. Your competition will try and say that IBM is more complex and more expensive – but please make sure you let them know that is not the case. Our easy-to-use Management Center tooling, unlike our competition needs NO coding to work so sites can be run day to day by marketing professionals. We even put free training out there to assist them. And… when your customers consider a true TCO, we will not be more expensive. I’ll tell you more when we get to pricing. IBM WebSphere Commerce scored highest of all 20 vendors evaluated in "Ability to Execute" Furthermore, IBM WebSphere Commerce scored highest of all 20 vendors evaluated in "Completeness of Vision" IBM is the only vendor who has presided over the Leaders quadrant for sixteen consecutive years

13 Some WebSphere Commerce Customers
Here are just a few of the almost 3000 customers running on WebSphere Commerce. I mentioned our competition likes to plant landmines for us and one that I hear often is that IBM is too expensive and that they only care about the big customers. You’ll notice on this slide, customers of every size and the solutions we provided were across many different price points. If your customer is serious about eCommerce, they can buy IBM WebSphere Commerce at a price point that will give them an amazing return on their investment and they will be able to stay on that platform and grow their success for a decade or more to come. You’ll also notice customers from lots of industries. WebSphere Commerce plays, of course in retail, but also in Manufacturing, Healthcare, Insurance, Telco and even Government.

14 A Few Key Target Industries/Competitors:
Retailers/CPG Clients that: Want to promote brand and products through new channels, affiliates, and social networking sites Want to reach customers across multiple channels, i.e. Web, Mobile, Kiosk, Call Center, Store, etc. Industrial/Mnfg Clients that: Have complex product sets, contracts, pricing schemes and are struggling to represent these online Want to looks more like retailers on-line Health Care Payers that: Due to new national healthcare legislation, are developing a new “retail like” business selling Wellness products to consumers, NOT insurance. Competitive Installs: Customers using licensed e-commerce solutions like ATG/Endecca (older versions), Microsoft, SAP, Hybris/ICongo, GSI, Magento Some Really Good industries to start with? These are the ones with lots of references. Retail of course, but also manufactures like Whirlpool, Parker Hannifin and Delta Faucet. An emerging industry for WebSphere Commerce right now is healthcare and Insurance, folks like Medco and BlueCross Blue Shield Florida are already WebSphere Commerce customers. New government mandates have made for a lot of confusion in this industry and we have a great team of experts lined up and ready to go to help our customers claim their space on the web rather than letting the government do it for them. Speaking of governments, we are hearing from a number of States as well, wondering how to build their mandated “HealthCare” exchanges. Tell them to Let us help! There are also lots of competitive installs out there that may be worth replacing. Microsoft for example, is no longer supporting Microsoft Commerce Server. Many customers who chose this path are regretting that choice and looking to IBM for help forward with another path. I also suggest the IBM reference DB – you can access it through Partnerworld. If you are looking for customers using WebSphere Commerce in a similar industry to an account you are targeting, go there to look. Also remember, if you close a deal to return the favor by putting your customer reference into the reference database. If we all remember to do that, we will have turned a good resource into a great resource in no time. Also, Steve Cowley is publishing win wires for Smarter Commerce, including WebSphere Commerce wins that your IBM reps can search through for you. While these win wires are too new to be references yet, they do list the sales teams. If there is a win out there close to one you want to emulate, give the sales team a call and ask them to share their presentations, RFP, pricing structure, partner strategy – anything that might help you compete and win. Then remember, once you have won your deal, do the same thing for reps that call you for help – taking the time to be a team player will come back to reward you every time.

15 WebSphere Commerce V7 Price Summary
Product List Price (as of March 2012) *WC – Express D582ULL $31,700 / 100 PVUs *WC Professional D55W0LL $119,000 / 100 PVUs WC Enterprise D55WVLL $193,000 / 100 PVUs WC Developer Express D53WVLL $4,880 / user license WC Developer Professional D53WRLL $22,600 / user license WC Developer Enterprise D53VGLL $37,700 / user license IBM Gift Center for WebSphere Commerce D57P1LL $15,200 for 25 stores Sales Center for WebSphere Commerce D57P6LL $20,200 / 10 users license Sterling OM Add On to WC D0IWBLL $70,900 / 1 million Order Lines Sterling Configurator for WC D0IX4LL $144,000 / 100 PVUs Link to Software Quote Order Tool - NA US List Prices as of March, 2012 from SQO: PPA customers can expect additional discounts Business Partners may give additional discounts Prices typically increase about 5%/yr *Avoid Selling Express and Professional when Possible

16 WebSphere Commerce Portfolio Positioning
WC Edition Express Professional Enterprise Value Proposition Entry-level, yet Enterprise grade, B2C e-commerce solution for GB market at a competitive price point Multi channel B2C commerce – Web, Mobile, Call Center, Kiosk, and In-store Multi-channel commerce with multiple sites and multiple business models (B2C, B2B, B2B2C) Target Market General Business (GB) companies with employees only Customers wanting to deliver differentiated experience and maintain control of their site Cross-channel retailers Enterprise-class customers needing one or more B2C e-commerce sites Enterprise-class customers needing one or more B2C / B2B e-commerce sites Retailers and B2B companies needing multiple sites sharing business & IT assets Key Capabilities* Web 2.0 Starter Store Social Commerce and Mobile Commerce support No High Availability Dialog Activity Builder, Cross-channel Processes, Marketing Experimentation and Workspaces Support for High Availability B2B capabilities – Accounts & Contracts Extended Sites (multi-site support) Key Terms & Conditions Limited to companies with emp. only Max of 200 PVUs (280 for Intel 35xx / 55xx series) and one store Staging included for Express only Support for Windows and Linux OS Support for DB2 database only Cannot buy Sales Center/Gift Center No PVUs or company size limitation One store per 100 PVUs Customers can buy Sales Center and/or Gift Center Unlimited Stores Need separate contract with IBM for commercial / SaaS hosting Sell Enterprise Early and Often! We sell very little Express and Professional – better to discount enterprise and customers either need or will need this functionality. The main differences – Express can only be sold to companies with less than 1,000 employees, can not be used where more than 200 PVUs are needed, does not include eSites or BtB capabilities and can not be used with Sales Center or Gift center modules. Professional also does not have BtB capabilities, and is limited to one store per 100 PVUs (so multiple eSites for brands or countries become a problem) 99.9% of the time, I sell Enterprise to my customers. In cases where I have violated my own rule and try to sell Express or Pro to save a little money, customers come back because they need functionality only available in Enterprise and then they are not happy to learn they not only have to upgrade the license, they have to re-architect the site. I have learned it is better to sell a lesser quantity or give a bigger discount to avoid customer sat issues in the future. Almost ALL customers, even the ones that start small, will learn they have an international opportunity or an opportunity to add a new brand or sell to a new channel in the future – which Enterprise will let them do easily. *Professional includes all capabilities in Express and Enterprise includes all capabilities in Professional

17 WebSphere Commerce V7 Licensing
WebSphere Commerce (WC) Environments Development Workstation Developing and modifying WC specific assets including commands, data beans, services, store templates or business logic. Requires per user WC Developer license Test Staging Production Deploy WC solution Staging server utilities There are multiple environments in WebSphere Commerce. We charge the same for both Production and Staging. There is no charge for test servers. We also charge, as you saw on chart 18, for developer workstation licenses. These are licenses for developers who will be doing coding. There is no charge for Management Center, the web based tool used by IT and Business users. Management Center is included with our Production and Staging licenses. Testing Functional, integration, system, performance, stress and user acceptance testing. Does not require per user WC Developer license Testing WC solution manually or via automated tools PVU based WC License is not Required PVU based WC License Required PVU based WC License Required Using WC solution and Business user tools Key Updates No charge for Test servers** Only Developers modifying WC assets need WC Developer License Business Users Authoring business content, Testing, and Training. Does not require per user WC Developer license **This is internal ONLY announcement

18 Definitions – Commerce Environments
Production – WebSphere Commerce server program that runs one or more live Store(s) accessible to users via any channel and/or touchpoint including but limited to web, mobile devices, call center, kiosk, and in-store solutions Staging – WebSphere Commerce server program in which store information and business content like catalog and promotions are copied into a separate database, incremental changes/updates are made, tested with fully developed application and then promoted to the Production utilizing staging server utilities including but not limited to stagingprop, stagingcopy, and fileprop. Staging is meant for final review and end user sign off on the fully developed solution prior to promoting to Production. Staging is considered an extension of the Production environment, and thus the Staging environment must be licensed separately in addition to the Production environment Development – WebSphere Commerce server program that is intended for development or modification of the following WebSphere Commerce assets but not limited to Store, Store templates, Store features, business logic, WebSphere Commerce commands, data beans, and services Test – WebSphere Commerce server program that is intended for various types of testing on Commerce solution including functional, integration, system, performance, and load testing. Test servers may not be used for Staging purposes This chart just gives you definitions of the environments on chart 21 so you’ll have them available when you need them.

19 Definitions – Standby Commerce Environments
Cold Standby - WebSphere Commerce server program for standby purposes that is installed and configured but not running Warm Standby - WebSphere Commerce server program for standby purposes that is installed, configured and running but not handling online customer traffic, and not doing activities such as mirroring transactions and synchronizing data that would allow an active hot switch between WebSphere Commerce server programs, databases, or other resources Hot Standby - WebSphere Commerce server program for standby purposes that is installed, configured, running and doing activities such as serving online customer traffic, mirroring transactions, synchronizing data, or actively pinging a live server PVU based licenses are only required for HOT Standby Another question I often get asked is what about standby or disaster recovery environments? Whether or not we charge depends on what type of environment the customer needs. We charge only for Hot Standby environments, that is environments doing work like serving online traffic, mirroring transactions, synchronizing data or actively pinging live servers. If a customer wants to have servers installed, configured and standing by in case of an emergency, that is ok and we won’t charge them, unless they start using them to do activities as defined above.

20 Sizing – Peak Capacity Warning
– do not send this document to your customer Client fills out questionnaire – you can have your ITS fill it out with them. Send questionnaire to Techline/Atlanta/IBM Takes a few days-2 weeks and you will receive Sizing Document Example: Processor Unit Count Summary Commerce Server No. of Value Units Production 630 Staging 70 Total 700 We size for peak capacity and we charge accordingly. I have heard customers argue that they may only need that capacity a few days a year, for example over the holiday season, but they must still pay for their peak capacity needs all year – and we take that into consideration when our marketers come up with our list product pricing. In order to give your customer a price, you will need some information from them. The SW price will come from filling out a sizing form – usually you or you and your Client Technical Professional will work with your customer to make sure this gets filled out correctly and you give your client all the information they need. Tossing this to them in an is not as effective as taking the time to go through it with them. Once you have the form filled out, you’ll want to submit it to Techline. In the US that address is: Techline/Atlanta/IBM. When you get your sizing back – you will have a recommended HW topology (pictured on the left) – but if you are like me and you are not a HW expert, you’ll appreciate the “cheat sheet” that techline includes – which is the picture on the right. Very important – do NOT send this document to your customer! At least not right away. Our sizing tool is very good but it can only size for what we know – so a typical Madison BtC or Elite BtB Starter store out of the box. We can not size for a customers unique backend integrations or for customizations they are planning to make. For these reasons, you may choose to ADD to the PVU count on this form. You may also choose to have the customer fill out a second sizing which represents their “worst case” growth scenario over 3 or 5 years. This would then become the backbone of a case for your to grow your sale through an Enterprise Capped deal – allowing them use of all the SW they need over 3 years or 5 years up to a certain cap. Work through all these strategies to see if you can grow your deal BEFORE you decide what to share with your customer.

21 Independent Report on B2C eCommerce Platforms
IBM is cited as a leader in The Forrester Wave eCommerce report – and we have been for 16 years! As we’ve talked about, the eCommerce space moves fast. IBM is not just a leader in this space now, but we have been a leader in this space for 16 years! And you can bet within this time, we have reinvented and improved WebSphere Commerce with every new release and feature pack – in order to stay on top. We have customers, like LLBean, who have been able to leverage their investment in WebSphere Commerce for a decade and a half. There are not many companies out there who can say that. Point this out to your customers and grab a copy of this Gartner Report too – which points out that going with one of these small guys is risky business when your business is at stake. Gartner says – evaluate your vendors vision and strategy…. Source: M&A Activity Poses Risks and Benefits to ECommerce Plans, Gartner, October, 2011 “The past 18 months have seen a string of merger and acquisition (M&A) activities impacting many of the leading vendors in the e-commerce solution market. Evaluate your vendor's vision and strategic plans critically, and from the perspective of short term challenges to the business”. – Source Gartner, October 2011

22 VALUE CHAIN STRATEGY AND SERVICES CORE BUSINESS SOLUTIONS
The IBM Smarter Commerce Vision IBM has an 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 So –let’s look at our Vision and Strategy. Is IBM here to stay? Your customers should understand this is a strategy two years in the making – we’ve invested $3 billion thus far on acquisitions, we’ve created a Global Smarter Commerce practice with over 1000 consultants and we are continuing to build it – we are growing our already #1 flagship offering, WebSphere Commerce with solutions that reach across Buy, Market, Sell and Service – all while staying open. It’s pretty safe to assume that we are serious about this space and we are here to stay. ********************************* Let's take a look at the integrated, end-to-end portfolio. We had a leading, organic product in the market -- WebSphere Commerce. Decided to look at the whole Commerce business process end to end across Buy, Market Sell and Service. We acquired our #2 competitor, Sterling Commerce which gave us B2B Integration and Managed File Transfer, distributed order management, enhanced our WebSphere Commerce offering by adding the best of Sterling’s multi-channel selling offering with configuration price quote and end-to-end logistics and supply chain visibility ILOG: supply chain optimization and decision rules capabilities Coremetrics: insight into web and marketing operations and digital marketing optimization leader Unica: transforming marketing from an art to a science and the leader in enterprise marketing management. Filenet: enable management of any type of asset for all business needs used for things like advanced case management business processes in customer service Cognos, SPSS, and Netezza provide a powerful range of predictive & prescriptive analytics and data management. Emptoris – brings cloud and on-premise analytics software that brings more intelligence to procurement and supply chain operation DemandTec – our latest acquisition brings pricing, promotion and assortment optimization We have the best of the best to bring you the integrated portfolio of solutions from Value Chain Strategies to get your customers started – to a comprehensive suite of solutions across the value chain – for buying, marketing, selling and servicing your customers all supported by advanced analytics and workload optimized systems and cloud offerings. But… we NEVER want our customers to think we expect them to buy everything we have in our portfolio. Instead, we want our customers to know that we are doing a tremendous amount of work in integrating these products and we hope when they have a need in the Buy, Market, Sell or Service space, they will see value and look at our offerings – but we will also stay open and our clients can use whatever technology they chose in any of these areas. Advanced Analytics and Workload Optimized Systems 22 22

23 When You Have Questions
Your Channel Rep NA – Lisa Sisco World Wide – Steve Gatto Your Commerce Rep We are Growing! We Need You! We are Here to Support You We Thank You So, last slide – ask if you have more questions or need help with demos, presentations or case studies. And, when you get an opportunity well qualified, that is, you have had those business value discussions and the customer agrees they want to know more, let us know. We will help you take it from there. Thanks everyone for your time on WebSphere Commerce – do we have time for questions?


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