IBM Unveils B2B Solutions for Mid-sized Customers

Offerings at Supply Chain Management Conference 2000 Emphasize Opportunities in Emerging World of Trading Networks

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- 20 Mar 2000: IBM today announced a host of major supply chain management (SCM) initiatives -- including application enhancements for IBM's premier line of servers, new Internet solutions, a series of strategic alliances, and financing packages -- to help mid-sized companies profit from online business-to-business (B2B) relationships and benefit from new opportunities in the emerging world of trading networks.

The new offerings and alliances will enable IBM to better serve the immediate B2B needs of medium-sized companies through effective supply chain management and help them benefit from Internet-based trading networks in the months ahead. IBM will enable the participation of both buyers and sellers in the midmarket trading networks and will provide technology support.

The announcements, made at IBM's second annual Supply Chain Management Conference by IBM's new Global Midmarket Business unit(GMB), underscore IBM's commitment to mid-sized companies. As further evidence of its commitment to the marketplace, IBM will invest $300 million this year in brand and corporate marketing campaigns targeted to these customers.

"As more trading networks come online, they will play a pivotal role in a company's B2B activities and reshape the way enterprises of all sizes do business," said Peter Rowley, general manager, IBM Global Midmarket Business. "Mid-sized companies in particular can dramatically improve their profitability by optimizing relationships with customers, suppliers, employees and partners. With today's announcements, IBM is summoning the strength of its vast portfolio and partnerships to help these companies truly leverage the power of e-business."

Independent trading networks are secure online marketplaces that bring together buyers and sellers within a common vertical industry and facilitate the real-time transfer of information, money and goods. By serving as electronic marketplaces, these networks play an important role in supply chain management, which is necessary to manage the flow of information and resources a company needs to produce and deliver goods as promised within schedule and within budget.

The announcement marked the debut of IBM's GMB organization, created to place greater focus on the needs of medium-sized customers by offering solutions, services and education to help them achieve marketplace advantage through e-business. The offerings, all geared to help companies acquire and retain customers, optimize supplier relationships and improve employee productivity, will be developed and delivered worldwide through IBM's 90,000 Business Partners.

New B2B Applications for AS/400

Applications supporting the IBM AS/400 will be expanded to include products from B2B software leaders -- i2 Technologies, Inc.,** QAD,** SynQuest** and Logility** -- to help customers leverage the Internet while protecting their investments in the AS/400. The announcements strengthen AS/400's solutions portfolio by adding supply chain "planning" capability to an already strong stable of AS/400 execution applications for companies of all sizes.

New SCM solutions for the AS/400 include:

- i2 Technologies: i2's eBusiness and TradeMatrix solutions allow AS/400 customers to leverage i2's software for operational excellence throughout the extended supply chain -- increasing revenues, reducing expenses, making full use of assets, and increasing responsiveness to customer demand. This solution enables customers to link to comprehensive electronic marketplaces, such as i2's TradeMatrix.com. The solutions will be available on the AS/400 beginning in the third quarter. It is also available on RS/6000 and Netfinity.

- QAD: Focused on optimizing the ordering process, the eQ B2B Order Management Solution for Internet-enabled order management enables a company to leverage its investment in existing enterprise applications by integrating them into a global e-business solution. For B2B environments, QAD eQ is a bridge between the company Web site and back-end enterprise systems, built on a highly adaptable model of customer/supplier relationships. The complete solution consists of Sell-Side, Fulfillment, Replenishment and Buy-Side Management. In addition to AS/400, the solution will be available on RS/6000* and Netfinity.*

- SynQuest: Advanced planning and scheduling capabilities are integrated with manufacturing execution to enable real-time management for improved customer responsiveness on every order. SynQuest Manufacturing Manager for AS/400 helps companies manage all resources in the production cycle and optimizes schedules based on cost, on-time delivery and total order cycle time. It is also available on RS/6000 and Netfinity.

RS/6000 Hosted Internet Application

IBM and Xspeedium.com** announced a dynamic B2B marketplace for small to medium- sized companies. The solution delivers supply chain management, customer relationship management and e-commerce applications over the Internet for a low monthly fee. Using a standard Internet browser, Xspeedium subscribers can extend their current system to the Internet in a low cost, low risk, rapid implementation manner. The solution will use the RS/6000 hardware platform and Lotus Domino as the server platform. IBM Global Services will host the site and provide a wide range of ongoing services for Xspeedium. The solution is available immediately at an entry price of $250 per month.

Netfinity CRM Solution

Lilly** and IBM introduced the VISUAL Customer Relationship Management (CRM) Solution, a comprehensive suite of front-office applications fully integrated with the production and distribution execution functions of other Lilly products. VISUAL CRM gives a sales force on-the-spot access to VISUAL Supply Chain's parametric configurator and concurrent scheduling engine. On the post sales side, service orders are generated as actual production work orders -- a critical integration point for the sharing of materials and resources between field service and new customer orders. The solution is available exclusively on IBM Netfinity servers.

Alliances & Initiatives

The IBM - i2 Technologies, Inc. - Ariba Alliance**is a key component in IBM's efforts to bring customers B2Be-commerce and collaboration.Together, the alliance will deliver the industry's first end-to-end solution for B2B. The companies will offer advanced open solutions to meet three critical aspects of accelerating the B2B economy: full-service marketplaces, integrated supply chain management and range of open services, in which the alliance will work together to deliver a common suite of open network-based commerce services, available both as hosted Internet solutions and software solutions. The integrated solution is expected to automate all business interactions between trading partners, delivering greater cost savings, efficiencies and competitive advantage to global corporations and marketplaces. This alliance is based on IBM's advanced e-business hardware, software and services capabilities and supply chain expertise, the Ariba B2B e-commerce platform and i2's TradeMatrix** services and B2B platform.

IBM is announcing other alliances:

- VerticalNet, Inc.** is launching its newest vertical community, LogisticsOnline.com (logisticsonline.com), growing the total number of VerticalNet® communities to 56 and positioning the company as a leader in B2B e-commerce. IBM will provide advertising, vertical specific information and e-business services for customers through an Internet "storefront" devoted to the wholesale industry. IBM's ongoing contributions to LogisticsOnline.com will also involve a range of information, services and offerings, including current logistics management initiatives, logistical case studies, and industry solutions.

- HostLogic** unveiled two solutions for small and medium-sized companies based on IBM technology. It includes two offerings -- Young Enterprise** and itLogistix** -- which are based on SAP R/3, hosted over the Internet and can be implemented rapidly, conveniently and affordably. Young Enterprise is designed exclusively for small to mid-sized cross-industry companies and includes an integrated application suite that provides the backbone for e-business. itLogistix, a turnkey supply chain management solution for software and hardware companies, covers the movement of high-tech goods.

- NetVendor** andIBM are expanding their relationship to deliver a total B2B e-commerce solution. Adding Close & Associates as an implementation Business Partner to the relationship, IBM and NetVendor will now offer a full range of implementation services to the current hardware, software and financing options for the solution. The solution uses NetVendor's E.MBRACE** Internet commerce offering bundled with IBM's hardware and software technologies. The solution is available immediately. Pricing varies based on customer requirements.

- REAL Solutions** and IBM introduced a new bundled solution for rapid deployment of an e-commerce Web site. The solution includes the hardware, software and custom development services required to create an online storefront with 1,000 catalog items. This Lotus Domino-based turnkey solution simplifies the product selection, integration and custom development cycle and allows businesses to service customers on the Web. The solution includes a tailored order-processing application, an easy-to-use shopping basket facility, a powerful search engine, secure credit-checking and payment system and more, allowing those with little or no technical Web design knowledge to update the content of the site. The solution is immediately available in the United States and Europe on IBM's AS/400, RS/6000 and Netfinity platforms.

- JD Edwards Storefront, powered by IBM WebSphere Commerce Suite, provides a robust electronic storefront solution coupled with an agile enterprise software system that allows companies to establish online stores and increase revenues while maintaining strong customer relationships. IBM and JD Edwards** announced new services, provided by IBM Global Services that allow for a complete solution implementation, from conception to installation, within 90 days. Financing for the entire solution is also now available from IBM Global Financing. The targeted price for the scoped services offering is $250,000. The solution is now available in the USA and Canada and will soon roll out to Europe and other geographies.

IBM Global Financing for Midmarket

To help mid-sized companies obtain the solutions they need, IBM Global Financing is offering special financing packages. For solutions installing over a quarter, customers can "sweep" any combination of qualifying expenditures that occur during the quarter, such as consulting or systems integration charges, into their equipment lease, at the same predetermined fixed rate. This is particularly attractive to customers who are making multiple payments to vendors for short duration consulting and systems integration contracts (e.g., time & material), roll out installation services contracts or software licenses over any three-month period. In addition, American Software,** E3,** Infinium,** Industri-Matematik International,** QAD and SynQuest participate in TOTAL Financing for e-Business - the first ISVs to team with IGF to offer one-rate financing on their piece of the solution.

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