IBM Software Group
© 2004 IBM Corporation
IBM Express is the right size for midsize businesses
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The on demand era
New on demand business
An on demand business is an enterprise
whose business processes—
integrated end-to-end across the
company and with key partners,
suppliers and customers—can respond
with speed to any customer demand,
market opportunity or external threat
— Sam Palmisano Oct. 03
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value proposition
Changing role of suppliers
Increased responsibility and need for design and development collaboration and integration
Shift toward fewer OEMs and fewer suppliers
Expectations of continuous improvement and cost cutting – the “squeeze model”
Strategic forces
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Pricing Pressures
Security Threats
Customer Expectations
Unbuoyant Economy
GovernancePressure
Productivity Pressure
Capital and Asset Utilization Pressures
Open Movement
Commoditization
Clusters
Grids
Autonomic Computing
Web Services
Blades
VirtualizationStandards
The emergence of on demand business
Business
Technology
Accelerating advances in technology
Deeper integration of IT with business
Why on demand? What’s in it for you?
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On demand business and IT
Flexible Financial & Delivery Options
ENTRY
ENTRYBusinessTransformation
On DemandOperating
Environment
Business P
rocesses
• Increasing flexibility is the key—business models, processes and infrastructure • Technology acts as an enabler instead of a barrier
You can start anywhere
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Flexible Financial & Delivery Options
On DemandOperating
Environment
Business P
rocesses
BusinessTransformation
• Leverages existing assets
• Enables integration
• Infrastructure design matches business design
Modular Built for change Standards-based
Optimizing your infrastructure
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Well-educated customers demand quality, selection and value
Are you under pressure to cut costs, streamline operations and be more efficient?
Suppliers can’t respond fast enough to changes in your inventory, let alone in the market
If customers cannot shop conveniently and receive personal service in the store, through the catalog, on the Internet or by phone, their loyalty is at risk
Competitors squeeze your margins
Micro pressure points
Do these challenges sound familiar to you?
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Your Title Here
“Add Business Partner Customer quote here.”
— Source
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# of local engagements
Quote from BP president?
Facts that qualify the BP as a vendor of choice
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Macro pressure points
“Retail industry could save $40B/year by eliminating supply chain information errors.”— A.T. Kearney, The eRed Zone, Oct 2002
“In 2004, the top emerging areas in which organizations plan to invest are enterprise application integration and wireless technology…”
— The IT Spending Report (2003-2004)AMR Research, August 2003
You are facing uncontrollable mandates
Economic volatility and globalization
Increasing consolidation
across industries
Increasing regulations and
industry standards
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42% of the almost 500 IT executives polled said their systems were more complex than necessary… and maintaining and managing that excess complexity cost them an average of 29% of their IT budgets.— CIO Insight, 02/2003
Companies that linked business processes with trading partners show 70% higher profitability than those that do not. — Business Advisor Zone, 12/2/2002
Analysts see the pressures too
New technology alone won’t boost productivity. Productivity gains come from managerial innovation… Companies generate innovations, in fat years or lean, by deploying new technology along with improved processes and capabilities. — McKinsey & Company, Volume 2 - 2003
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Characteristics of on demand businesses
1The need for flexibility and innovation forces increased componentization of the overall business and its processes
Applications evolve on a parallel path— becoming increasingly modular
Simplification of the underlying IT infrastructure is required to support the changes in the business
2
3
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Make business processes flexibleMeet changing business and market requirements
Increase efficiency and lower the costs of running business processes Eliminate redundant tasks and facilitate self-service capabilities
Make transactions move faster and improve qualityLower costs, improved responsiveness and customer satisfaction
Connect internal systems with those of customers, suppliers and partnersIncreases efficiency, lowers costs and expands access to markets
Offerings that solve medium-size business challenges
NOTE:You may merge content above with Business Partner
solutions.
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Express portfolio delivers what midsize businesses want, at a price you can afford
Midsize businesses are demanding more flexible, affordable, open alternatives to help you grow and reduce costs
Flexible and simple licensing terms and better finance options
“IBM’s increased focus on vertical markets reflects the changing needs of customers.”
— Analyst Stephen O'Grady, RedMonk, “IBM Thinks Vertical with Software Revamp,” CNET, December 1, 2003
“An enterprise that actively manages future risks should favor J2EE”
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Process Information
IBM WebSphere® Portal - Express
IBM WebSphere BusinessIntegration Connect - Express
IBM WebSphere Business Integration Express for Item Synchronization
IBM WebSphere MQ Express
IBM WebSphere Commerce - Express
IBM Lotus® Domino™
Collaboration Express
IBM Lotus Domino Utility Server Express
IBM Integrated Platform Express
for Employee Workplace
IBM Tivoli® Storage Resource Manager Express
IBM DB2 Universal Database Express
IBM DB2 Content Manager Express
IBM DB2 Everyplace® Express
IBM WebSphere Application Server - Express
IBM Integration Platform for e-business Express
Complete IBM Middleware Express Portfolio
People
SWG offerings
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Business Partner application or service goes hereExpand on the Business Partner local midsize business solutions or applications
XXXXXXXXXX
XXXXX
XXXXXXX
XXXXX
XXXXXXX
Business Partner application IBM and Business Partner components Placeholder
Placeholder
Placeholder
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Challenge
Solution
Jagged Peak needed a way to ensure the performance and availability of its hosted realtime demand execution management application or risk losing existing and potential customers.
Jagged Peak deployed IBM Business Partner Open Demand's solution OpenLoad, a scalable application-testing solution, powered by a robust information management system that allows the company to meet it’s customers’ service level agreements (SLAs) by promising 100% uptime.
Benefits Enhanced ability to meet and exceed SLAs Increased customer confidence Better responsiveness Increased application efficiency 100% availability record
Jagged Peak promises 100 percent uptime
“We are extremely impressed with DB2 UDB Express and WebSphere Application Server Express. They enable small and medium-sized businesses to benefit from the rich functionality, ease of use and speed of enterprise editions at an affordable price.”
—Donald Doane, President and CEO, OpenDemand Systems
Note to IBM Business Partners: IBM SMB references follow each solution area. You can use these or substitute your own.
The best reference is the business down the street. If you choose to use your own, you can use this format. See “Backup” section for a blank template.
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Sur La Table serves up an online wish listChallenge
Solution
Sur La Table wanted to create an online gift registry.
Using IBM Business Partner MarcCole’s solution called Gift RegistryWorks, Sur La Table customers are now able to access a wish list that’s accessible via the Web or in-store PC kiosks powered by IBM WebSphere Express.
Benefits
Convenient for a registrant to create and update their registry
Linux-based solution using open-standards can enable diverse retailers’ environments
“It’ll be more convenient for a registrant to create and update their registry. They’ll be able to just touch a screen and get an immediate printout of any changes made.”
—Michelle Haycox, In-Store Operations, Sur La Table
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Anaconda sales increase 30-40 percentChallenge
Solution
Anaconda, a midsize sports equipment dealer needed to maximize responsiveness to its online customers and minimize costs.
IBM WebSphere Commerce provided a full-featured e-commerce solution at a price that was below other offerings.
Linux-based solution leverages open standards
Key Business Benefits
“We made the switch from Microsoft 2000 Server to Linux, and are happy with the system change, particularly because of the cost avoidance that comes with moving from proprietary software to open source.”
—Rob Meyer, Director of Internet Services, Anaconda Sports
Increased sales 30-40% Reduced the time to process order to
seconds rather than days Reduced paperwork with automated order
entry system Open system got rid of licensing fees
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What’s in it for midsize businesses?
Priced to market Right function Competitive features Provide “best of breed” features
and functionality Enabled for growth Easy to evaluate and order Evaluation materials and ordering
information simplified
Easy to learn and use Easy to deploy and install Installation and implementation Easy to manage Tools are provided to simplify
complex tasks Easy to support
All components, tools and information needed for successful implementation are provided as a single package
Affordable midsize business solutions to specific industry challenges
NOTE:Add Business Partner
logo here
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Using IBM integrated runtime
LogicLibrary saves thousands in installation costs
Challenge
LogicLibrary needed to make its enterprise application development tool, Logidex, “channel-ready,” by simplifying the packaging and deployment into a turnkey installation.
Solution
Value
Implemented IBM’s Integrated Runtime components into Logidex, creating a simplified package for the SMB market and for deployment by channel partners
Significantly reduced time and skills required to install Logidex for small and medium business customers
Opened up new markets in geographies outside North America by using channel partnerships that require a “channel-ready” product
Saved $1800 per installation that can add up to hundreds of thousands of dollars annually
Professional services team is redeployed to higher-margin projects
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Challenge
Selling ZipLip solutions to small and medium-sized businesses and mid-market customers is extremely difficult. Standard software strategy is too complex, expensive to install, and costly to support.
Solution
Value
ZipLip deployed Integrated Runtime using market leading WebSphere Application Server, DB2 Universal Database Express, and IBM HTTP Server
Multiplatform (extends deployment options)Windows and Linux
Wider range of available bundles
One product, license, contract, upgrade and support structure
ZipLip customers include:
ZipLip now able to deliver solutions to customers quickly and cost-effectively
10x increase in market opportunity
Double list of channel-ready solutions
Reduce deployment costs by 75%
Installation times shorten by up to 87%
Complexity dropped by 80%
Easier support and development
ZipLip gets from code to revenue more quickly
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Streamlining global online operations using WebSphere Commerce Express
Challenge Value
Hosting contract expired. Safilo needed to modernize its online catalog and marketing infrastructure.
Safilo solution completed in four weeks
Increased efficiency and productivity with advanced e business capabilities
Provided customers with accurate, up-to-date information and services
Lowered the total cost of ownership by reducing site maintenance expenses
The whole solution allows accurate online communication between Safilo and the system's users: opticians, salesmen and distributors.
Solutions
“So, at the end of our hosting contract, here in the USA we decided that a port to Oracle 9iAS would be the proper move. We were wrong. After a demo and discussion with the local IBM experts in WebSphere Commerce, we decided to abandon our port to Oracle and move the site to the USA and upgrade to WebSphere Commerce Express V5. The entire project was completed in 4 weeks and the site is wonderful.”
– Jeff Wolfe, Safilo USA IT Director
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2002 Share* 2001-02 Growth%
IBM 23.3% 17.5%
BEA Systems 17.3% 9.6%
Oracle Corp. 9.5% 8.0%
Tibco Inc. 4.9% -19.4%
webMethods 4.3% 6.3%
Sources: • IDC, “Application Deployment Platform Software Market, 2000-2002, with Leading Suppliers” June 2003 , Dennis Byron, Vice President, Business Process and Deployment Software Research • Gartner First Take "IBM Has Top Share in All Application Integration, Middleware Markets", J. Correia, Y. Natis, M. Pezzini, R. Schulte, 7 May 2003.
* Based on license revenue and license-related service fees
IBM "continued its long time lead of this market,“ IDC says (June 2003)
Application Deployment Platform Software Market
Application ServersIntegration Broker Suites
PortalsMessage-Oriented Middleware
Application Platform Suites Composite MarketTransaction Processing Monitors
Total Market
21
N/A1211
2131211
1111111
2000 2001 2002Worldwide IBM Market Share Position Based on New License Revenue
“IBM Has Top Share in All Application Integration Middleware Markets” Gartner Dataquest, May 2003
2000 2001 200219990
100
200
300
Ap
plic
atio
n In
teg
rati
on
Lic
ense
Rev
enu
e
IBM
TibcoWebMethods
SeeBeyondMercatorVitria
2003** Estimate based on 1H03 actual growth rates
The gap widens
Source: Wintergreen Research
Leading industry analysts acknowledge IBM market share dominance
Market leadership
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Industry standards leadership
1998 / 1999Java, XML and ebXML
Co-founder and lead architect for RosettaNet
Author of XML4J Chair OMG XML
Metadata Interch. Format
Co-author W3C Document Object Model
FounderXML.org Elected to Board
of Directors in OASIS
2000Web Services
and UDDI Co-author of
SOAP 1.1 and submission to W3C
Cofounder of UDDI.org and author of original UDDI specification
Co-author of WSDL
IBM contributes SOAP4J to Apache
2001Web Services
and Tools Led submission of
WSDL to the W3C Co-chaired W3
Web Services Workshop
Founder of Eclipse.org
Co-author of W3C XML Schema standard
Chair of Web Services Interactive Applications TC
2002Web Services and Security
Founder and chair, Web Services Interoperability Organization
Co-author of web services bus process specification (BPEL, WS-TX, WS-TC)
Co-author for Web Services Security roadmap and specification
2003Web Services and Security
Submission of BPEL to OASIS Co-chair WSBPELTC in OASIS Submission of Common Base
Events to WSDM TC in OASIS Submission of WS-Manageability to
WSDM TC in OASIS Co-authored and published EPAL
specification to WC3 Co-chair WSDM TC in OASIS More than 1,000 developers
devoted to XML and more than 1,500 focused on Linux. Over 200 software products running on Linux
Led workgroup responsible for finalization of SOAP 1.2
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Award-winning software brands
IBM is the leader in business automation
— Aberdeen, September 2002
IBM is the leader in portal software in 2002
— Gartner, 2003
IBM have widened lead as the leading and most question-free vendor in commerce servers
— Giga, August 2003
IBM is the leader in application integration
— Gartner, October 2002
Technology leadership “Best in Enterprise Integration”
— Intelligent Enterprise Readers Choice award 2002
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Award-winning Business Partner Applications here
The more local the award the better
Any local civic clubs or organization?
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awards or industry mentions
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IBM is committed to midsize businesses
$1 billion annual investment in Engineering $5 billion annual investment in technology acquisition
– Modeling
– Process Integration
– Software Development
Over 7,000 developers
10,000 customer sites rely on WebSphere MQ 2,000 customers rely on WebSphere Business Integration 2,000+ customers reply on WebSphere Portal since year 2000 introduction WebSphere Commerce powers 6 of top 10 pharmaceuticals IBM offers 48 industry-tailored business integration solutions that span 11 industries IBM WebSphere customers include 91 of the top 100 global companies in 2003 450K+ companies rely on IBM DB2 Information Management solutions
“Express is proof that IBM is serious about the SMB market.”
– Wayne Scarano SGA Business Systems
Nobody invests more
Experience really counts
IBM Express is affordably
priced
IBM Express is affordably
priced
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IBM Business Partner
Who and what skill sets matter from the customer’s point-of-view.
Business Partner experience, local background, etc…..
“Business Partner tagline or local customer quote.”
– Mr. Source,
Business Partner Staff
Experience really counts
IBM Express is affordably priced
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messaging
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Businesses like yours need options and choices
“While we expected some apprehension about over-dependence on Microsoft, we were surprised at the extent of this concern throughout the SMB market. Whether a five-person pizza shop or a 400-employee manufacturing facility, SMBs reported similar anxiety about Microsoft.”
—Helen Chan, Senior Analyst, Small And Medium Business Strategies, The Yankee Group
IBM delivers. Others don’t
Express demonstrates commitment to midsize businesses
”Express has allowed us to open up to those markets that in the past really weren't interested in IBM from a cost and support standpoint.”
—Sam Fatigato, CEO of Ascendant Technology, January 21, 2004
NOTE:If you wish, merge content above with Business
Partner local SMB applications
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Committed to the midsize business marketplace
IBM Gets Serious About ExpressJanuary 21, 2004
Happy Together: IBM, Linux and Small Businesses May 30, 2003
IBM escalates SMB war with MicrosoftFebruary 25, 2004
Software giants think small IBM, Microsoft move into niche marketsDecember 11, 2004
IBM Expects SMB to rev up IT spending in 2004 January 2, 2004
SMB Partners Eyeing WebSphere Express June 6, 2003
NOTE:Any local press headlines?
Articles about the BP?
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Assess your on demand business readiness and map out your journey
Calculate your ROI
Get started. Start anywhere
Go to BP URL or email xxx for next steps
Capitalize on the opportunity presented by a connected world
Take action today
www.ibm.com/software/smb
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© Copyright IBM Corporation 2004. All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software.References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way.IBM, the IBM logo, the e-business logo and other IBM products and services are trademarks or registered trademarks of the International Business Machines Corporation, in the United States, other countries or both. Java and all Java-based trademarks are trademarks of Sun Microsystems, Inc. in the United States, other countries or both.Microsoft, Windows, Windows NT and the Windows logo are trademarks of Microsoft Corporation in the United States, other countries or both.All other trademarks, company, products or service names may be trademarks, registered trademarks or service marks of others
Disclaimer: NOTICE – BUSINESS VALUE INFORMATION IS PROVIDED TO YOU 'AS IS' WITH THE UNDERSTANDING THAT THERE ARE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND EITHER EXPRESS OR IMPLIED. IBM DISCLAIMS ALL WARRANTIES INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. IBM DOES NOT WARRANT OR MAKE ANY REPRESENTATIONS REGARDING THE USE, VALIDITY, ACCURACY OR RELIABILITY OF THE BUSINESS BENEFITS SHOWN.. IN NO EVENT SHALL IBM BE LIABLE FOR ANY DAMAGES, INCLUDING THOSE ARISING AS A RESULT OF IBM'S NEGLIGENCE.WHETHER THOSE DAMAGES ARE DIRECT, CONSEQUENTIAL, INCIDENTAL, OR SPECIAL, FLOWING FROM YOUR USE OF OR INABILITY TO USE THE INFORMATION PROVIDED HEREWITH OR RESULTS EVEN IF IBM HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE ULTIMATE RESPONSIBILITY FOR ACHIEVING THE CALCULATED RESULTS REMAINS WITH YOU.
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Back up
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Add key benefit customer
Challenge Value
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Solutions
“….quote goes here...l.” – attribution goes here
(Name, title, company)
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