IBM Commerce on Cloud

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1 Patricia Seybold Group Trusted Advisors to Customer-Centric Executives IBM Commerce on Cloud Cloud Deployment of Enterprise-Class for Businesses of All Sizes By Mitch Kramer Senior Consultant, Patricia Seybold Group Prepared for IBM Corporation by Patricia Seybold Group Patricia Seybold Group Boston, MA USA Phone Fax

2 IBM Commerce on Cloud Cloud Deployment of Enterprise-Class for Businesses of All Sizes By Mitch Kramer, Senior Consultant, Patricia Seybold Group Prepared for IBM Corporation Requirements for Deploying in the Cloud We ve all been hearing and reading a lot about cloud computing, about the cost and timeto-market benefits of deploying applications in the cloud. It s true. Cloud computing absolutely delivers these benefits. Businesses of all sizes, across all industries, in every geography have achieved these benefits for many applications in their operational systems portfolios. But the benefits of cloud computing have been a bit elusive to achieve for ecommerce, the operational applications for online marketing, sales, fulfillment, and service. Why? Because businesses of all sizes, from emerging small and mid-sized businesses, to upper midmarket businesses, to large enterprises, need ecommerce applications that deliver all the benefits of cloud computing, but also deliver: Comprehensive ecommerce capabilities capabilities for marketing, merchandising, sales, fulfillment, and order and account management Fast and easy deployment Access to consulting services for expertise and best practices to help plan and manage ecommerce system deployment and post deployment support IBM Commerce on Cloud Addresses the Requirements IBM has a new cloud computing ecommerce offering that addresses these requirements. It s called IBM Commerce on Cloud, and it enables businesses of all sizes from those emerging small and mid-sized firms to large enterprises to transform and expand their approaches to ecommerce. With IBM Commerce on Cloud, businesses can: Add a new online sales channel Upgrade to an enterprise-class ecommerce platform from a homegrown or entry-level solution Add a web sales channel for a new brand or a new geography without disrupting established business Patricia Seybold Group

3 IBM Commerce on Cloud What Is IBM Commerce on Cloud? Complete but Easily Customizable System Comprehensive Capabilities IBM Commerce on Cloud is a complete, but easily customizable, cloud-based ecommerce system. IBM has designed it to address the requirements of midmarket businesses and large enterprises for supporting B2B and B2C business processes that span marketing, merchandising, sales, order and account management, and customer service. In IBM Commerce on Cloud, IBM has created an offering that balances comprehensive ecommerce capabilities with fast and easy deployment. IBM WebSphere Commerce, the company s enterprise-class ecommerce platform, is the foundation of IBM Commerce on Cloud. With over 800 active customers including the largest and best-known brands, WebSphere Commerce has been an industry-leading ecommerce system for more than 15 years. Over that time, IBM has continuously and significantly improved it to address the changes in the ways that customers want to do business online. We ve found in our continuing evaluations that WebSphere Commerce offers a broad set of innovative ecommerce capabilities, capabilities that support B2B and B2C customer activities and support marketing and merchandising initiatives designed to influence customer behavior. IBM Commerce on Cloud also includes a large set of pre-integrated applications that add the capabilities needed to create an ecommerce ecosystem that spans marketing, selling, and fulfillment. Briefly, these applications, and the capabilities that they provide to IBM Commerce on Cloud, are: IBM Sterling Order Management for visibility into product availability and order processing and fulfillment IBM Payment Systems for the purchasing process IBM Coremetrics for monitoring, measuring, and reporting on the performance and effectiveness of an IBM Commerce on Cloud deployment Experian CheetahMail for bulk marketing campaigns BazaarVoice for customer ratings and reviews Avalara Avatax for calculation of sales tax Akamai CDN for high performance caching and delivery of web content Fast and Easy Deployment Cloud deployment, packaged templates/starter stores, and easy-to-learn and easy-to-use tools make IBM Commerce on Cloud fast and easy to deploy. Cloud deployment means low upfront capital investment, pay-for-use pricing, and unlimited, perfectly elastic scalability. Packaged templates for online stores are complete and configurable ecommerce stores, and represent best practices from thousands of IBM ecommerce deployments and years of experience helping companies create online store fronts. Businesses update templates with marketing messages, branding, and product data to represent their offerings, and customize the home page, search landing pages, and product page templates to create a deployable store. If a business is new to ecommerce, or if a business with an existing ecommerce system wants to use IBM Commerce on Cloud to support a new geography or a new brand, then IBM Commerce on Cloud store templates can provide the foundation for that ecommerce deployment. Illustration 1 2 Patricia Seybold Group 2012

4 in the Cloud for Businesses of All Sizes shows the Aurora B2C home page store template, which can be customized with your brand, imagery, products, and marketing offers. B2C Store Template Home Page Illustration 1. We show the home page of the Aurora B2C store template in this illustration IBM Corporation Patricia Seybold Group

5 IBM Commerce on Cloud Consulting Services for Deployment and Ongoing Management IBM is a full service provider. A broad array of consulting services from its Global Business Services (GBS) organization complements the software technology of IBM Commerce on Cloud. Businesses can engage GBS consultants to help in every phase of an ecommerce deployment, from pre-deployment planning through post-deployment web content management. For example, within GBS, Global Process Outsourcing and Business Process Outsourcing (GPS and BPO) services are exactly what businesses, especially small and mid-sized businesses, need to help in transforming and expanding their ecommerce approaches using on IBM Commerce on Cloud. GPS and BPO services assist in or outsource: Planning, creative design, branding, configuration, customization, and implementation of IBM Commerce on Cloud deployments Measurement, monitoring, analysis, and refinement the tuning of IBM Commerce on Cloud deployments Management and maintenance of IBM Commerce on Cloud deployments, including updating web content, keeping cross-sells and up-sells up to date, or adding new ecommerce capabilities and features. Cross-channel ecommerce implementations the processes, staff, and facilities for an ecommerce experience that includes live chat, response management, and contact center support to help customers perform ecommerce activities IBM Commerce on Cloud for Businesses of All Sizes Requirements and Scenarios Addressing Business Requirements At the beginning of this report, we listed a set of requirements for deploying ecommerce systems in the cloud and we described three scenarios for expanding and/or transforming an ecommerce approach with IBM Commerce on Cloud. We also stated that businesses of all sizes emerging small and mid-sized businesses (SMB), midmarket companies, and large enterprises have these requirements and could use IBM Commerce on Cloud and IBM GBS services to address them through these ecommerce scenarios. Let s take a closer look at how IBM Commerce on Cloud and complementary IBM GBS offerings address requirements for business of all sizes for deploying cloud-based ecommerce systems. In Table A, for each requirement, we ll briefly describe the IBM Commerce on Cloud and/or IBM GBS features that address the requirement and we ll show the business segments that have the requirement. 4 Patricia Seybold Group 2012

6 in the Cloud for Businesses of All Sizes Addressing Requirements Requirement Key Features and Capabilities SMB Mid Large Rich and flexible, easily customizable functionality Integration with key applications and data Migration to onpremise deployment Pre-deployment assistance Ongoing, customer support and ecommerce management and maintenance assistance IBM Commerce on Cloud provides, rich, and flexible ecommerce capabilities, capabilities built on IBM WebSphere Commerce, IBM s industry leading ecommerce platform. IBM Commerce on Cloud s capabilities are accessible and easier and faster to deploy through reusable and customizable store templates. Pre-integrated capabilities create a comprehensive ecommerce experience. These capabilities add: Inventory visibility and order management Payment authorization and processing Sales tax calculation Web analytics Bulk delivery Ratings and reviews Web acceleration sites that are deployed on IBM Commerce on Cloud can be migrated from the cloud to an on-premise deployment as business needs change. IBM GBS service offerings for strategy and transformation, business analytics and optimization, application innovation, and application management help businesses of all sizes plan, design, and deploy IBM Commerce on Cloud web stores. IBM Global Process Services offerings help businesses add live chat, response management, and contact center-based customer service to their IBM Commerce on Cloud deployments, creating a cross-channel ecommerce experience. IBM GPS process optimization services help businesses continuously monitor, analyze, and refine their IBM Commerce on Cloud deployments Patricia Seybold Group Inc. Table A. We show how IBM Commerce on Cloud addresses business requirements for ecommerce in this table. Transition to On-Premise Deployment Cross-Channel Two notes about the information in Table A. First, IBM is unique among providers to support the transition from cloud deployment to on-premise deployment of ecommerce systems. For cloud deployment of ecommerce, businesses can consider several alternatives to IBM Commerce on Cloud. None of these alternatives offer the possibility of a transition to on-premise. Second, IBM Commerce on Cloud supports cross-channel ecommerce, a key strength of the offering. While customers may find a business s ecommerce site online and may perform their research, buying, and order and account management activities online, along the way, they re going to need assistance assistance to clarify product details, to initiate a return, or even to make a complaint. Customers will want to get that assistance via , text message, chat, or telephone. IBM Commerce on Cloud capabilities support Patricia Seybold Group

7 IBM Commerce on Cloud cross-channel ecommerce and, for businesses that need additional help, IBM provides outsourcing services for assisted-service channels. Supporting Scenarios Now, let s examine IBM Commerce on Cloud s support for ecommerce scenarios adding a new ecommerce channel, upgrading to an enterprise-class ecommerce platform, adding a new brand or a new geography. In Table B, for each of the three business segments, we present the ecommerce scenarios that are most relevant to the segment, the key characteristics of the segment for ecommerce deployment, and the key features of IBM Commerce on Cloud and of the IBM consulting offerings that best fit the segments/scenario combination. Supporting Scenarios Segment Scenario Key Characteristics Key Features Emerging Midmarket Enterprise Add a new online sales channel Add a new online sales channel Upgrade to an enterprise-class platform Add ecommerce for a new brand or a new geography Upgrade to an enterprise-class platform Add ecommerce for a new brand or a new geography No ecommerce experience Few IT resources Risk averse Need rapid ROI No, or limited ecommerce experience Limited IT resources Need rapid ROI Cross-channel ecommerce Requirements for strong marketing and merchandising Limited IT resources, especially for departmental or LOB deployments Requirements for rich ecommerce functionality Requirements for high level of customization Cross-channel ecommerce Transition to on-premise Marketing, selling, fulfillment, and account management capabilities Customizable store templates Pre-integrated capabilities for a comprehensive ecommerce experience Easy-to-learn, easy-to-use tools IBM GBS services for planning, design, tuning, and management Customizable store templates Pre-integrated capabilities for a comprehensive ecommerce experience Easy to learn, easy to use tools Enterprise-class, cross-channel ecommerce capabilities IBM GBS services for planning, design, tuning, and management IBM GPS for cross-channel commerce Customizable store templates Pre-integrated capabilities for a comprehensive ecommerce experience Easy-to-learn, easy-to-use tools Enterprise class, cross-channel ecommerce capabilities IBM GBS for planning, design, tuning, and management IBM GPS for cross-channel ecommerce IBM offers a range of deployment models providing the option of migrating to an onpremise solution as business needs change 2012 Patricia Seybold Group Inc. Table B. We show how IBM Commerce on Cloud complemented by the offerings of IBM GBS address the ecommerce scenarios. 6 Patricia Seybold Group 2012

8 in the Cloud for Businesses of All Sizes The Bottom Line in the Cloud for Businesses of All Sizes Businesses of all sizes want to achieve the time-to-market and lower cost benefits of cloud computing for ecommerce systems that have best in class cross-channel capabilities yet are fast and easy to deploy. In this report, we ve demonstrated that IBM Commerce on Cloud delivers these benefits and addresses these requirements. executives, brand managers, and/or line-of-business managers in emerging small and mid-sized businesses, upper midmarket businesses, and large enterprises should seriously consider deploying their ecommerce systems with IBM Commerce on Cloud to: Add a new online sales channel Upgrade to an enterprise-class ecommerce platform from a homegrown or entry-level solution Add a web sales channel in a new geography or for a new brand without disrupting established business Patricia Seybold Group

9 About Mitchell Kramer and Patricia Seybold Group ABOUT THE AUTHOR MITCHELL I. KRAMER is a Senior Vice President and Senior Consultant at the Patricia Seybold Group. Kramer currently focuses on customer relationship management technology, architecture, and analytic applications as well as the computing infrastructure and information technologies that support this customer-centric domain. Kramer applies his experience and expertise to help customers evaluate, compare, and select CRM products and develop approaches toward successful implementation. Product vendors continue to leverage Kramer s skills and insights to develop product requirements, to better understand the competitive environment, and to assist in planning and delivering marketing programs. Kramer draws on his extensive primary and secondary market research in the architecture, design, evaluation, and selection of enterprise-wide distributed computing infrastructures. In consulting engagements, Kramer often uses the technology frameworks he s developed with corporate IT organizations to help them with architecture and product selection decisions. He frequently works with companies to help them determine product requirements, market and product positioning, competitive analysis, and customer satisfaction. Kramer has successfully managed company launches, product introductions, and business and product repositioning. He has also developed and documented business plans for raising capital and for mergers and acquisitions. Patricia Seybold Group Trusted Advisors to Customer-Centric Executives If you're a visionary customer-focused executive, the Patricia Seybold Group should be your first choice for ongoing strategic advice, business and technology guidance, customer experience best practices, and help with customer-centric initiatives. Founded in 1978 and based in Boston, we provide consulting, research and advisory services, peer groups, and interactive workshops. We help clients to design and continuously improve their customer-focused business strategies and processes using our proven consulting methodology, Customer Scenario Design. The CEO and founder, Patricia Seybold, is the New York Times best-selling author of Customers.com and The Customer Revolution. Patty's latest book, Outside Innovation, is now available. Patricia Seybold Group P.O. Box 783 Needham, MA Phone: (617) Fax: (617) [email protected] Web: Customers.com Research Service IBM Corporation is authorized to redistribute this report Patricia Seybold Group Unauthorized redistribution of this report is a violation of copyright law.