IBM Software Group

WebSphere Commerce B2B Business Models

2007 IBM Corporation

WebSphere Commerce B2B Business Models

Market Message
WebSphere Commerce B2B solution provides widest range of out-ofthe-box
Business Models to support all possible way to interact with customers using a
single platform
Business Processes to reduce total cost of doing business and improve
customer/partner satisfaction by automating LOB processes
WebSphere Commerce Solution Strategy

Business
Models
Business
Processes
Industry Plays

Electronics

Industrial Equipment

Telecom

WebSphere Commerce B2B Business Models

WebSphere Commerce B2B solution offers out-of-the-box

support for wide range of business models and processes
WebSphere Commerce B2B Solution Framework
B2B Business Models

Simple

Hosted
Partners

Distributor

B2B Direct

Complex

Value
Chain

LOB Business Processes/Activities

Marketing

Partner/
Channel
Relationship

Catalog /
Product
Information

Sales &
Operations

Service &
Support

Target-toEngage

Recruit-toMonitor

Source-toMerchandise

Quote-toCash

Request-toResolve

Electronics

Industrial Equipment

Telecom

WebSphere Commerce Platform

3

WebSphere Commerce B2B Business Models

WebSphere Commerce B2B Business Models

WebSphere Commerce B2B Solution Framework
B2B Business Models

Simple

Hosted
Partners

Distributor

B2B Direct

Complex

Value
Chain

LOB Business Processes/Activities

Marketing

Partner/
Channel
Relationship

Catalog /
Product
Information

Sales &
Operations

Service &
Support

Target-toEngage

Recruit-toMonitor

Source-toMerchandise

Quote-toCash

Request-toResolve

Electronics

Industrial Equipment

Telecom

WebSphere Commerce Platform

4

WebSphere Commerce B2B Business Models

B2B Direct
Scenario

B2B Direct Selling

Single seller selling directly to customers or

businesses
Manufacturers selling directly to customers by
eliminating the channel (e.g. ibm.com)

Direct to
customer

Consumer

Manufacturers selling production goods to another

business
Enterprise
Accounts

Retailers selling non-production goods to business

organizations (e.g. Staples Link)

Challenges
Managing unique contract for each organization
Support for hierarchical roles that govern access and
authority
Operating multiple individual sites for multiple buyer
organization

Business
Customer

Manufacturer,
Retailer

Direct to
business

Reseller,
Dealer

WebSphere Commerce B2B Business Models

B2B Direct WebSphere Commerce Capabilities

Key WebSphere Commerce Capabilities
Catalog
Management

Contracts

Member
Management

Multiple catalog hierarchies

Product assortments
Customized and contract-driven catalog view

Contract-based pricing and policies

Multiple contracts per customer
Contract modeling tools for business managers

Customer Examples*

Manages over 1 million

products

Customized, contractdriven catalog and pricing

Configurable, granular Business Policies

Hierarchical roles govern access and authority
Integrated workflow

Buyer sites with roles-based

pricing and approval authority

Individual, branded stores for each B2B customer

Multiple storefronts on a single instance

Thousands of buyers sites

customized for individual orgs

Extended
Sites

*May not run this specific biz model

WebSphere Commerce B2B Business Models

Staples Supporting Diverse Contractual Relationships

Challenge
Supporting multiple customers buying
under multiple contracts
Individual buyers have differing levels of
purchase authority

Benefits

Track site usage and online sales rates

Over $1Billion (70%) of total B2B sales

driven through site

Solution

Site usage analysis enables Staples to

continually enhance search engine
performance

10,000+ buying organizations each see

contract-specific pricing and policies
Built-in approval workflow facilitates
purchase authorization across multiple
users at different organizational levels

Automated support for diverse policies,

contracts, buyer roles on a single platform
"Thispastyearalone,86percentofthenewcustomers
weacquireduseStaplesLinkfordoingbusinesswith
usLisaHamblet,VP,B2Becommerce,Staples
7

WebSphere Commerce B2B Business Models

Distributor (Brokerage model)

Scenario
Value-added bridge between suppliers and
customers
Multiple manufacturers selling to hundreds of
resellers via single distributor

Challenges

Selling through Distributor

Resellers

Manufacturers

Distributor

Streamline information delivery and transaction

along the value chain
Integrate with suppliers and resellers existing
systems

WebSphere Commerce B2B Business Models

Distributor model WebSphere Commerce Capabilities

Key WebSphere Commerce Capabilities
Guided
Selling

RFQ

Order
Management

Collaboration
&
Workspaces

Parametric Search (drill down on attributes)

Sales Assistance (Q&A dialog)
Side-by-side Comparison

Solicit quotes for goods & services from interest list

Create contract or create order
Workflow for create, modify, approve, and submit

Single source of order; integration with backend

Order Splitting, ATP and Routing
Transaction visibility across the channel

Document sharing; Project management

Threaded discussions
Instant messaging

Customer Examples*

Assisted Selling and

configuration enhances ability
to sell complex solutions

Improve response times

and interaction costs with
automated RFQ support

Integration hub streamlines order

processes real-time between
ERP, suppliers, and customers

Real-time collaboration between

resellers and suppliers increase
sales staff productivity by 37%
*May not run this specific biz model

WebSphere Commerce B2B Business Models

Avnet enables Suppliers and Resellers to become On Demand

Businesses
Challenge
Provide value-added bridge between suppliers
and thousands of resellers
A solution powerful yet flexible enough to integrate
with all of suppliers and resellers existing
Benefits
business processes
ROI of 360% in first year
37% increase in sales staff productivity

Solution

Automate needs of resellers from lead

generation, to proposal and quote design, all
the way to closure
Guided selling, automated information
delivery, collaboration between suppliers &
resellers, analytics and sense and respond
capabilities

82% reduction in resellers order cycle

time; 85% reduction supplier cycle time
20% reduction in overall IT costs
58% of reseller orders fully automated
from end to end
Technologyhasenabledustoreachoutand
provideITsupportforourresellersandour
supplierstoliftthemupandmakethemmore
competitiveBillChapman,CTO,AvnetInc.
10

WebSphere Commerce B2B Business Models

Hosted Partners
Scenario

Hosted Partners

An enterprise selling through a network of partners

Partner/Reseller
Network

Enterprise supports smaller partners by providing

catalog and IT infrastructure to create a store-front

Manufacturer

Challenges
Ability to onboard a new partner that does not have
IT infrastructure

Channel
Hosting

Selectively share catalog while allowing partners to

sell their own products
Maintain consistent brand image and user
experience while offering unique products tailored to
specific set of customers

11

WebSphere Commerce B2B Business Models

National Accounts
Scenario

Hosted Partners

An enterprise selling to major customers through a

network of partners
Supporting dealers by providing catalog, Contract
pricing, terms, and IT infrastructure to create a
consistent national multi-dealer/distributor
experience

Challenges

Partner/Reseller
Network

Manufacturer

Catalog
&
Contract
Hosting

Business
Customer

Onboarding National Accounts quicklywith

specific Catalog views, prices and terms.
Share customer specific catalog views
Maintain consistent brand, terms and user
experience while offering products specific to a set
of customers
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WebSphere Commerce B2B Business Models

Hosted Partners WebSphere Commerce Capabilities

Key WebSphere Commerce Capabilities

Extended
Sites

Catalog
Filters

Campaigns
&
Promotions

Customer Examples*

Deploy multiple partner storefronts on a single

instance
Central site administration with controlled access
Share catalog and business assets across sites
Deliver consistent brand experience while running
site-specific campaigns and promotions

Selectively share/filter catalog with partners

Allow partners to add their own products

Customer segmentation; targeted marketing

Web and E-mail promotion, marketing
experimentation

100s of individually managed

sites while sharing a single
checkout process

Distributors use filters to reprice manufacturers products to

create their own catalog

Use profiles and preferences,

personal lists and targeted
marketing to differentiate

*May not run this specific biz model

13

WebSphere Commerce B2B Business Models

eFollett hosts hundreds of bookstores, enable shared and

autonomous functionality from a single instance
Challenge
Redesign the retail platform to host and
integrate with more than 900 campus stores
Centrally manage storefronts while allowing
partners to differentiate themselves

Solution
Leverage Extended Sites to share the same
infrastructure to collectively serve more than 4
million students across North America
Campaign and marketing tools deliver targeted
content, advertising, and enhanced user
experience

Benefits
Serves more than 4 million students
across North America
Single login and checkout process
across all partner sites
Cross-sells and feature products drive
additional revenue
Streamlined retail process (order-tofulfillment) reduces maintenance costs
Increased operational efficiency from
automated back-office integration
14

WebSphere Commerce B2B Business Models

Value Chain
Scenario

Tiered Demand Chain

A chain of enterprises that sell goods or services

Customers

Multiple manufacturers selling through multiple

distributors to end customers
B2B2B or B2B2C

Distributors
Manufacturers

Order handoff
Marketplace hub

Challenges
Integrating various demand chain players on a
single platform
Ability to host distributors that do not have IT
infrastructure
Aggregating and filtering catalog from multiple
manufacturers to display products tailored to
individual customer

15

WebSphere Commerce B2B Business Models

Value Chain WebSphere Commerce Capabilities

Key WebSphere Commerce Capabilities

Customer Examples*

Catalog
Management

Catalog sharing with downstream partners

Sourcing from multiple upstream manufacturers
Catalog filtering to support contracts

RFQ

Solicit quotes from multiple sources

Multi-round negotiation
Support for custom and made-to-order products

Reduced RFQ lead times

from days to minutes

Automate ordering process from quote-to-cash

Order handoff (open/closed orders) to partners
Transaction visibility across the channel

Integration hub streamlines order

processes real-time between
ERP, suppliers, and customers

Order
Management

Channel
Management

Rapidly onboard new partners with Extended Sites

Manage business relationship through Contracts
Collaboration tools to boost productivity

Integrate with multiple

manufacturer catalogs and filter
appropriately for end users

Provides suppliers and

resellers with real-time info to
optimize decision-making
*May not run this specific biz model

16

WebSphere Commerce B2B Business Models

Changing Inc Orchestrating the Demand Chain

Challenge
Provide online commerce capabilities for
paper industry extended demand chain
Minimize cost and additional workload to
support new channel in demand chain

Solution
Integrated network connects
manufacturers, distributors and customers
Manufacturers and distributors can set and
manage their own storefronts hosted in
Changing Inc environment

Benefits
Created consortium of 7 manufacturers
which includes a broad product line
needed by demand chain
Implemented using existing business
partner
Secured business with new customers
even prior to launch
Platform for building relationship, loyalty
and improving revenues
Reorderingmakesup60percentofourbusiness
andnowmemberscanseealltheirprevious
ordersandreorderwithjustakeystroke
17

WebSphere Commerce B2B Business Models

WebSphere Commerce B2B Business Models

Business
Models

WebSphere
Commerce
Capability

Hosted
Partners

Value
Chain

B2B Direct

Distributor

Selling directly to
businesses or
customers

Bridge between
suppliers and
customers

Catalog mgmt.

RFQ

Extended Sites

Catalog mgmt.

Contracts

Guided Selling

Catalog Filters

RFQ

Req. List

Configurator

Order mgmt.

Member mgmt.

Order Mgmt.

Campaigns &
Promotions

Extended Sites

Workspaces

Selling through a
network of partners

Collaboration
Tools

Selling through a
chain of enterprises

Channel mgmt.
Extended Sites

Customer
Examples

18

WebSphere Commerce B2B Business Models

Other B2B and Industry Plays in XL

WC B2B Business Models

WC Electronics Sales
Play

WC B2B Business Processes

(Cross-Industry Sales Play)

WC Telco Sales
Play

Link to Xtreme Leverage (XL):

http://w3-103.ibm.com/software/xl/portal/viewkitcontent?srcID=KP01&kitID=V227365O87155H39&contentID=Y957159X83272J32&contentType=
component&contentTitle=Presentations

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