Archive for the ‘e-commerce’ Category
We’re finally getting some rain in central Texas. We’ll see how long it lasts!
And on the topic of rainmaking, this just in from our friends at Nucleus Research.
Nucleus conducted an analysis of 21 of IBM Smarter Commerce case studies and their ROI, and discovered that for every dollar spent, companies realized an average of U.S. $12.05 in returns.
According to the research, this payback occurred in an average of 9 months (with a high of 23 months, and a low of two).
The cases Nucleus analyzed included U.S. and European companies and government agencies which had deployed IBM Smarter Commerce technologies.
All the case studies were developed independently by Nucleus, following their standard ROI methodology, and IBM was privy to the results only after the research was completed.
In their analysis, Nucleus also observed some summary conclusions, finding that Smarter Commerce projects delivered both top-line and bottom-line benefits, with roughly 60 percent of returns coming from indirect benefits such as productivity, and the rest from direct savings such as reduced operational costs or hires avoided.
Specific key benefits included the following:
- Increased productivity. In many cases companies were able to accomplish more work with fewer staff or avoid additional hires as they grew by automating previously manual processes and increasing employee productivity.
- Reduced costs. Smarter Commerce customers experienced cost reductions in areas such as customer call handling costs, technology costs, and other costs associated with supply chain transactions.
- Improved inventory management. Greater visibility into customer demand and inventory levels enabled Smarter Commerce customers to gain better control over their inventory, reducing inventory carrying costs and increasing inventory turns.
- Improved decision making. Greater agility and rapid insight into data for decision making enabled companies using Smarter Commerce to more quickly make decisions and act on them with confidence.
- Reduced customer churn and increased customer satisfaction. Companies using IBM Business Analytics were able to more rapidly understand customer satisfaction and retain more profitable customers by proactively addressing customers’ propensity to churn. For example, one telecommunications customer was able to reduce customer churn by 8 percent in the first year and 18 percent in the second year by further refining its churn analysis.
Customers Leverage Prepackaged Functionality
Nucleus indicated that the $12.05 average return from Smarter Commerce was at the high end of the range of returns Nucleus had seen from other assessments of deployments such as analytics and CRM, and many IBM Smarter Commerce clients indicated they had achieved high returns by taking advantage of the investments IBM has made in providing integrated solutions, more intuitive user interfaces, and prepackaged industry functionality.
By way of example:
- Integrated solutions and prepackaged industry functionality accelerate time to deployment and time to value while reducing overall project risk.
- Usability improvements drive more rapid adoption and make it easier for companies to drive adoption of technologies such as business analytics to casual and business users beyond the data expert specialists that have historically been the primary users of analytics.
Industry-specific functionality and expertise were particularly important in the success of customers adopting Smarter Commerce technologies in the government sector, such as social services agencies and police departments, where IT often has limited resources.
You can go here to download the full report.
Well, I hope you and yours are having a happy holiday season, wherever in the world you may be.
I just returned from a wonderful visit to see my parents and some extended family up in my hometown of Denton, Texas, where we were treated to our first white Christmas in three years, the snow billowing down starting around mid-day Christmas Day, and plunging the Dallas/Ft. Worth roads into a virtual ice skating rink.
As for the Christmas holiday shopping season, Sarah Perez with TechCrunch just reported that Amazon.com once again came out on top, in terms of online satisfaction.
No big surprise there. I conducted a large portion of my own holiday shopping via Amazon, and received everything I ordered within a few days. I also treated myself to a set of Ben Hogan 1988 “redline” blade golf clubs, which I discovered on eBay for a very agreeable price. Unfortunately, the weather in Texas has kept me off the golf course (now back in Austin, I hope for that to change in the next few days!).
Of course, if you were trying to watch movies on Netflix on Monday, you might have found yourself watching a blank screen. Due to an Amazon Web Services outage, Netflix viewers were treated to bags full of coal starting around 3:30 PM on Monday, AWS’s third major outage this year.
Myself, I went on a “Redbox” binge over the holiday, discovering some recent titles for $1.20 a pop (including the latest Spiderman!), only to discover they’ll be bringing some competition to the streaming realm with the introduction of “Redbox Instant,” expected to go into private beta sometime soon. Redbox Instant is expected to match Netflix’s monthly streaming subscription price of $8 U.S.
Whatever your preference, it certainly looks like more and more Americans will be viewing filmed entertainment on devices other than their TVs. Another TechCrunch story reports that one in four Americans now owns a tablet computing device, with such devices now even having overtaken the number of e-reading devices like the Kindle (again, I did my fair share here over the holidays, giving out two Kindle Fire HDs as family gifts. Now I can only cross my fingers my family will use them!)
Regardless of your preference, the story goes on to say that one in three people in the U.S. now owns some kind of tablet or e-reading device, and this data before the full gamut of holiday shopping data has hit analysts’ spreadsheets.
One such analyst, Strategy Analytics, has Apple’s iPad still leading the pack, with Amazon and Samsung quickly narrowing that lead.
So what did Santa bring YOU for Christmas, and better yet, what did Santa YOU give others???
ON the topic of Smarter Commerce, I’ve seen two stories today….count ‘em, TWO…about the intent for numerous retailers promising to match online retail prices at brick-n-mortar stores during the coming holiday season.
Found that Tickle Me Elmo for ten whole cents cheaper at Amazon???…just step right on up the Target cash register, because the Price is Right!
One of the stories was in The Wall Street Journal, and claimed that over the past few days, Best Buy and Target both had said they would match the prices offered by the online sites of some rivals, including Wal-Mart and Amazon.
This in an effort to combat “showrooming” (bet you didn’t even know there was such a word!), whereby shoppers checking products in stores then buy them on competitor’s websites, presumably for lower prices.
But, as the story goes on to observe, there soon could be trouble at the register, as these new policies require shoppers to both ask for and PROVE the existence of lowered prices.
“Mommy, Mommy, I just found the latest Furby on Amazon.com for a whole fifty cents less!”
Now, excuse Mommy while she fumbles around in her purse for her smartphone! Oh, never mind that line of people waiting around the store to pay full price for their Furbys!
You get the picture.
According to the Journal story, Best Buy’s going to go them one better, and provide their sales reps some discretion — if the SKU’s price is too low, you don’t get to go!…out the store with your Furby, that is.
All the more reason, I say, to stay in this holiday season, tablet or laptop in hand, with a nice warm cup of Egg Nog, and do ALL your holiday shopping from the comfort of your own home!
Alisa Maclin is Vice President of Marketing for IBM’s Smarter Commerce Initiative. Smarter Commerce is a unique approach designed to help companies better integrate and more effectively manage their value chain — including buy, market, sell, and service processes — to put the customer at the center of decisions and actions.
IBM’s Smarter Commerce portfolio consists of software solutions, including over $2.5B in recent acquisitions, as well as consulting and implementation services and workload optimized systems.
Previously, Ms. Maclin was Vice President of Market Strategy and Planning for IBM Global Business Services, with responsibility for developing and executing marketing strategy for IBM’s consulting and application management business worldwide.
Ms. Maclin has more than 20 years of global marketing and sales leadership experience at IBM, including executive roles in IBM’s Software, Global Services, and Sales and Distribution divisions.
We sat down with Ms. Maclin recently at the IBM InterConnect event in Singapore to better understand the evolution of the Smarter Commerce story over the past few months, including the announcement of the new IBM Marketing Center, which has been described as a “multipurpose cloud-based suite aimed at organizations that want to take advantage of the Smarter Commerce capabilities without having to invest in their own IT infrastructure.”
We discussed this, and much more, during our few minutes together in Singapore.