1. - Procurement Solutions

2. - Procurement Solutions
Executive Summary

3. - Procurement Solutions

4. - Procurement Solutions
Omni-channel Marketing and Merchandising requires ongoing
collection and synthesis of data

5. - Procurement Solutions
This shift powers engagement at every point in the customer
lifecycle
Understand Engage
Manage
Make useful recommendations
about products and services
Give customers a
means to share ideas
and opinions
Intervene when customers
are struggling
Provide relevant content
that informs the buying
decision
Send offers when customers
are most likely to buy
Understand and respect
customers’ preferences
Identify, develop, and
reward brand advocates
Match service levels with
expectations
Serve and sell to
customers in their
preferred channels
Rescue at-risk customers
before they churn

6. © 2013 IBM Corporation6
IBM Omni-Channel Merchandise Optimization helps merchandisers
and sales planners maximize sales, profit, and shopper loyalty
Quantified consumer behavior powers predictive merchandising
and marketing decisions across all channels
Deliver rapid results with leading solutions

7. © 2013 IBM Corporation7
58%
are more price-
conscious today
than they were a
year ago
70%
of a B2B
purchase
decision is made
before a rep is
contacted
43%
increase in
mobile sales on
Black Friday
2013 vs. 2014
71%
of smartphone
users compare
prices in stores
5.9B
mobile phone
subscribers
across the globe
in 2013
92%
of consumers
research online
and seek
opinions via
earned media
before a
purchase
…Today’s consumer uses many channels, many devices and is
empowered in their purchase decisions
*SOURCES: IBM Institute for Business Value; IBM 2013Holiday Benchmark Reports; ChiefMarketer.com

8. © 2013 IBM Corporation8
What if your marketing efforts resulted in?
Improved customer value, loyalty
and retention
5%–15% increase is typical
Higher campaign ROI
15%–30% increase is typical
Increased response rates
10%–50% increase is typical
Other business metrics
improvements
revenue, profit, others vary by industry
(assets under management, basket size, #
products owned, etc.)
More campaigns with the same
resources
2–5x increase is typical
Reduced cycle time for marketing
efforts
40%–80% reduction is typical
Reduced marketing costs
20%–40% reduction is typical
Lower customer acquisition costs
25%–75% reduction is typical
More effective marketing More efficient marketing

9. - Procurement Solutions
MSI’s Goals & Requirements

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How IBM’s Solution can meet MSI’s needs

11. - Procurement Solutions
Helping MSI evaluate the benefits of IBM’s Proposal
 MSI will benefit from 20% reduction in costs over 3 year project
 IT expenses reduced by 15% (494,000 Yen over 3 years)
 Elimination of Disaster Recovery Service (168,480 Yen over 3 years)
 Generates 662,00 Yen free cash flow to invest in core business
 Ensure MSI will not have a spike in expense at beginning of project by
utilising Global Finance to match project expense with cost saving.
 Net savings in each year (52,000 Yen in Year 1)
 Reduction in energy costs due to consolidation from 9 to 2 data centre’s
 Financial & Operational flexibility
 Lease with Global Finance allows upgrade, purchase and return options
 IBM Open source architecture allows easy integration of add on services such
as data analytics and simple integration to existing IT Systems
 Reference Cases for Discussion
 ING – Consolidation into 2 data centres . 15% IT cost reduction, 20% Carbon
footprint reduction
 Shell – Data Centre consolidation – 40% reduction in project timeline, 15%
reduction in costs

12. - Procurement Solutions
IBM – A single provider, with a wealth of experience in helping clients to achieve their
goals in the Insurance industry

13. - Procurement Solutions
Summary & Next Steps