Smarter merchandising and supply chain managament is possible only through analysis of a consumer's needs and buying behavior. Get an IBM retail industry frame work, create a platform for smarter operations and build out your brand loyalty.

1. The IBM Retail Industry Framework.
Integration, Optimization, Analytics

2. We’ve only just begun to uncover what is possible
Is your organization smarter?
on a smarter planet
Instrumented
A 21st-century retail system will be In the face of a radically transformed economy, retailers are under pressure to retain and
able to track every item in real time, build customer loyalty while at the same time cutting costs and streamlining operations.
transform cell phones into mobile
Their success will require innovative business models that rely on real-time insights to
shopping devices and tap the Web
meet customers’ changing demands and expectations.
to understand consumers’ tastes and
propensities to buy. They are doing so by becoming instrumented, interconnected and intelligent. By building
intelligence into our entire retail system, retailers, manufacturers and suppliers can
Interconnected
eliminate inefficiency and waste at every step of the chain—crucial in the current
A 21st-century retail system will be
economic climate.
integrated end to end - across suppliers,
manufacturers, partners, stores and
even the end consumer - through a
host of sophisticated devices.
Intelligent
In a 21st-century retail system,
companies will continuously analyze
the vast amounts of consumer data
they collect from multiple touch
points and transform it into critical
business insight.
2

3. Creating a compelling customer
To survive in today’s changing retail
experience requires retailers to environment, smart retailers are working to…
excel at these capabilities
Deliver a Smarter Shopping Experience
Attract and retain the customer A superior shopping experience that personalizes the shopper interaction, enables a shopper
• ncrease revenue and customer satisfaction
I to engage on their own terms and creates excitement and motivation for that shopper.
through quality customer interactions
Retailers delivering a smarter shopping experience are:
• ncrease revenue through effective loyalty
I
programs • Enabling customers to shop seamlessly and easily across touch points and brands
• ncrease customer profitability with
I • Making sure customer interactions are timely and relevant
targeted promotions • Helping customers to shape brand experiences in ways that reflect their interests and
Operate the most efficient & lifestyles
effective store • Always delivering on a brand promise to continuously meet customers’ expectations
• ncrease sales transaction execution
I
Develop Smarter Merchandising and Supply Chains
through deployment of advanced in-store
Retailers are focused on creating an efficient supply chains that allow them to deliver
self service and POS
localized, relevant assortments, tailored offerings and optimized inventory levels.
• mprove margins from shrink analysis
I
and loss prevention With smarter merchandising and supply chains, retailers and their suppliers:
• educe tabor costs by optimizing opera-
R
• Are reducing order lead times from days to hours.
tions and improving task management
• Know exactly where their merchandise is as it moves from the manufacturer to the
• mprove cash flows through cash flow
I
customer.
optimization
• Manufacture a trendy item in the correct amount to effectively fulfill real-time
Deliver a true multi-channel experi-
customer demand
ence
• Dynamically allocate inventory based on real-time customer demand and inventory
• ncrease revenue and customer satisfaction
I
constraints.
through quality customer interactions
• ncrease revenue through effective loyalty
I Build Smarter Operations
programs Retailers drive operational excellence through cost efficient management of people,
• ncrease customer profitability with
I processes and technology, while tightly managing performance and maintaining the ability
targeted promotions to rapidly modify processes and infrastructure to capture opportunities.
Embrace mobile and advanced inter- Smart is:
net capabilities
• Understanding sales trends in real time and adjusting inventory and promotions
• xploit mobile technologies to capture the
E
emerging ‘mobile shopper’
accordingly
• nable meaningful customer dialogs by
E • Reducing overall operating costs while deploying new customer services more quickly.
deploying advanced customer interaction • Quickly consolidating new acquisitions into an existing brand as well as existing
technologies processes and systems.
• ncrease the payment process efficiency
I
• Never allowing customer data to be breached or compromised
with mobile payments
A new kind of software platform is needed
Do you have an IBM Retail Industry A new kind of technology platform is needed in this environment. Not only does it need
Framework project ready to start?
to be versatile, adaptable and affordable, but it must be intelligent, interconnected and
instrumented.
The Retail Industry Framework provides the software platform that meets these needs.
3

4. The IBM Retail Industry Framework – a platform
The IBM Industry Framework
for building smarter retail solutions
I need insight;
I need to leverage new intelligence. The IBM Retail Industry Framework combines the power of IBM software with retail-
• usiness intelligence and performance
B specific software extensions, solution accelerators and best practices, to help you deploy
management solutions faster and at lower cost and risk. A framework approach helps you migrate to
• Trusted information a more strategic and flexible technology architecture that is aligned with the needs of
• Smarter content management your business, one project at a time. With the IBM Retail Industry Framework, you can
• Predictive analytics increase competitiveness by taking advantage of framework domains for:
I need to simplify; • Store & Channels: gives you the ability to implement a cross-channel strategy,
I need to work smarter.
enabling your customers to have a consistent experience with a retailer across all
• Dynamic business processes and models
channels.
• Smarter collaboration
• Marketing & Customer Management: gives you the ability to create a single view
• mproved accessibility for customers and
I
employees
of the customer, enable greatly improved sales, marketing and service and drive
• Easier integration of 3rd party solutions effective multi-channel delivery
• Merchandising & Product Management: provides the platform and management to
I need to respond quickly;
deliver a unified view of product information from any business or user access point.
I need a dynamic infrastructure.
• Supply Chain: implementing projects to optimize your supply chain processes, including
• Energy performance management
• Virtualized computing environments
Vendor On-Boarding and Trade Fund Management.
• nterprise-wide service and asset
E • Business & Finance Administration: providing tools and dashboards to manage the
management analytics surrounding your financial planning, metrics and consolidations, in addition
to key peformance indicators (KPIs) for improved Human Capital Management
Store and
Channels
Marketing Merchandising
and Customer and Product
Management Management
INTEGRATION
OPTIMIZATION
ANALYTICS
Business
and Finance Supply Chain
Administration
The IBM Retail Industry Framework Domains
4

5. The framework includes best practices and documented implementation approaches based
Examples of framework project on successful projects in the retail industry. Like building blocks, these projects enable
areas your teams to implement technology capabilities that can be reused throughout the
Store & Channels enterprise. For example, customer data can be centralized to service many different
• Store & Channels Performance processes in real-time, rather than staying locked up in different departments. This trusted
• Retail Store Integration information can be used for a wide variety of uses, such as to drive analytical tools which
• POS and Self Service are used to execute targeted promotions for increased customer profitability, to increase the
• Product Tracking quality customer interactions at the point of sale, or for bursting sales performance reports
• Loss Prevention to account managers.
• Store Planning
The IBM Retail Industry Framework supports an ecosystem of independent software
• Multi-channel eCommerce
vendor (ISV) applications, so you have the flexibility to choose the business applications
• Cross Channel Integration
that you need. These applications are supported with implementation tools and techniques
• PIM for eCommerce
for faster and easier implementation.
• CI Compliance and Security
P
Management With a framework approach, retailers can develop a sensible plan for achieving a more
agile and efficient IT infrastructure that is aligned with the changing needs of the business.
Marketing & Customer Management
You can simplify your infrastructure one project at a time, confident that your future
• Customer Insight
projects will build on prior investments.
• Single View of Customer
• Social Retailing Getting started
Retailers face differing levels of complexity in their IT infrastructures and have different
Merchandising & Product
Management strategic priorities. As you refine and prioritize your key business needs, getting started
• Merchandise Performance with the framework is easy; pick a project that will help you address your most pressing
• Product Information Management challenges.
• New Product Introduction With each framework project, your infrastructure becomes more agile, allowing you to
• Merchandise Planning progressively transform while generating a return on investment along the way. Accelerators,
• Market Basket Analysis such as common retail process and data models, help ensure that you deliver solutions
• Promotion Planning & Execution faster. And by taking advantage of best practices and defined framework projects, you can
Supply Chain reduce the cost and risk involved in deployment.
• upply Chain Performance
S Combining virtually everything you need
• Supply Chain Optimization The IBM Retail Industry Framework combines the industry knowledge, best practices,
• Vendor Management software and tools you need to bridge the gap between your business and IT requirements.
• Trade Fund Management Its open-standards approach and flexible service-oriented architecture let you select
Business & Finance Administration best-in-class components from different solutions and vendors based on your needs.
• inancial Performance
F Alternatively, you can take advantage of our services and IBM Research capabilities to
• Financial Analytics build your own applications using the framework’s state-of-the-art development tools and
• Planning, Budgeting and Forecasting techniques. As you progressively transform your IT architecture, you enable greater in-
• Financial Consolidation novation and agility, allowing you to be more competitive and responsive to the needs
• Human Capital Management of your customers, shareholders and regulators. Instead of adding complexity to your
• Enterprise Asset Mgmt infrastructure every time you deploy a new solution, with the IBM Retail Industry
• Energy Performance Management Framework you build simplified enterprise architecture—one project at a time.
5

6. Take advantage of our vast expertise
IBM is a world leader in the retail industry. Hundreds of retailers around the world
are implementing solutions with the IBM Retail Industry Framework. IBM can help
you get on the path to greater flexibility and agility, whether you’re just starting out,
© Copyright IBM Corporation 2009
looking to optimize your existing infrastructure or somewhere in between. Talk to
IBM Corporation
your IBM representative today about conducting a business value assessment to identify IBM Software Group Industry Solutions
ways to get started. Route 100
Somers, NY 10589
U.S.A.
For more information
Produced in Canada
To learn more about the IBM Retail Industry Framework, contact your IBM 11-09
representative or visit: ibm.com/software/industry/retail All Rights Reserved
IBM, the IBM logo, ibm.com, Smarter Planet and the
planet icon are trademarks of International Business
Machines Corporation, registered in many jurisdictions
worldwide. Other product and service names might be
trademarks of IBM or other companies. A current list of
IBM trademarks is available on the Web at ibm.com/
legal/copytrade.shtml.
Other company, product and service names may be
trademarks or service marks of others.
IBM provides this publication “as is,” without warranty
of any kind, express or implied, including the implied
warranties of merchantability or fitness for a particular
purpose. Some jurisdictions do not allow disclaimer of
express or implied warranties in certain transactions;
therefore, this disclaimer may not apply to you.
IBM reserves the right to change specifications or other
product information without notice. This
publication could include technical inaccuracies or
typographical errors.
References to IBM products and services do not
imply that IBM intends to make them available in other
countries.
P23729
6 REB03009-USEN-01