1. © 2002 IBM Corporation Emerging Solutions Dynamic Digital Merchandizing

2. what is Digital Media ? Images and graphics VideoAudio For entertainment For business

3. Digital Media Solutions The digital media lifecycle CreateManage Distribute & Transact  All digital media moves through the same lifecycle Planning, creating, producing and encoding information and unstructured assets such as video, audio, animation and images. Securely licensing, selling, and delivering digital content for business across multiple devices and delivery channels Managing the workflow, processing production, storage and retrieval of digital media, as well as the cataloging, indexing and annotation of original content

4. Digital Media Solutions Case Study: McDonalds - Netherlands Complete solution for restaurants : Dynamic menu boards Plasma screen advertising Kiosk ordering – including Drive Thru’ Video-Corner entertainment Interactive E-Learning for Employees POS related Dynamic Instore Merchandising Wireless services Security

5. Digital Media Solutions Restaurant – dynamic menu & advertisement Inventory Control Persuasive communications at time of customer decision Customer responsiveness to promotion Cost reduction Smithsonian Air & Space Museum Plasma Merchandising/ Menu Board Solution

6. Digital Media Solutions Significant Business Impact * QSR results based on actual results from May 2001 – April 2002 in an expanding QSR company compared with control stores and prior period results. Customer Satisfaction measures are from February 2002 CCF Digital Merchandising Research. Source: Same store sales vs. prior year increased 8% 5.4 percentage-point gain in Restaurant Operating Profit Combos maintained 28% post-digital increase Desserts incidence maintained 47% post-digital increase Credit Card Usage increased by 32% Soft drink Incidence increased 20–30% Customer satisfaction improvement resulting from increase in order accuracy, speed of execution, and overall improved service 2% decrease in food costs due to better menu management Outlet Performance Profitable Transactions Featured Credit Card Promotions Featured Beverage Promotions Brand Experience Food Costs Same store sales vs. prior year increased 8% 5.4 percentage-point gain in Restaurant Operating Profit Combos maintained 28% post-digital increase Desserts incidence maintained 47% post-digital increase Credit Card Usage increased by 32% Soft drink Incidence increased 20–30% Customer satisfaction improvement resulting from increase in order accuracy, speed of execution, and overall improved service 2% decrease in food costs due to better menu management Outlet Performance Profitable Transactions Featured Credit Card Promotions Featured Beverage Promotions Brand Experience Food Costs

7. Digital Media Solutions Retail Bank – in-branch digital advertisement Compelling, targeted, on- demand messaging at point of decision Additional revenue stream with leased ad space Re-purpose marketing material for new channels 70% of consumers make purchase decisions after they arrive at the outlet 75% of consumers say POP influences their decision to purchase Solution – centralized control of creation, scheduling, distribution, and play-out of dynamic marketing information to hundreds or thousands of stores and to any type of display device.

8. Digital Media Solutions  Department Store  Movie Theatre  Retail Bank  Shopping Mall  Supermarket  Train / subway stations  Fast food Restaurant ….. With billboard / menu space Dynamic Digital Merchandising Value Propositions  Increase Revenue and Reduce Costs  Improve Customer Shopping Experience  Complete Control of Billboard Space

9. Digital Media Solutions Digital Promotion Effectiveness…

10. © 2002 IBM Corporation Emerging Solutions Antenna Tag Reader RFID Digital Media

11. Emerging Solutions Pervasive capabilities and your business  The pervasive revolution will be disruptive – it will impact your business  Differentiation and competition based on pervasive capabilities is occurring today Where is your business?

12. Emerging Solutions Why IBM ? Hardware & Software WebSphere, WESM, WEA, wBI, MQ Series, DB2, xSeries, pSeries, storage, … Know-how Business Consulting Services, Systems Integrations, High Volume systems, High Availability, Telecom Infrastructure on demand eBusiness on Demand, hosting, managed storage, and network management Technology WDE and SPDE architecture, research, patent leader, test labs Open Standards 3GPP, MMS, SMS, WAP, SMPP, HTTP, SOAP, Parlay, SIP Partnerships Air2Web, QPASS, Openwave, Nokia, Real Networks, Sun, Cisco, Veritas on demand

13. © 2002 IBM Corporation Emerging Solutions Thank YouThank You