IBM's internal e-business transformation is about more than just
e-commerce, it's about how IBM has web-enabled its core business processes to gain
efficiency and business returns with several key stakeholder groups.IBM's transformation
ramped up dramatically in 98 and will continue in 99.
Efforts are focused in seven areas: e-commerce, e-procurement, e-care for customers,
e-care for Business Partners, e-care for Employees, e-care for influencers and e-marketing
communications. This is what IBM means by e-business as opposed to just e-commerce. IBM's
Web transformation is a "practice what we preach" story. We outsource our entire
Web infrastructure, including Web servers, data centers, networks and workstations from
IBM Global Services. We also use IBM Global Services and Atlanta Multimedia for our Web
application development. We use IBM hardware, including S390s, SP2s, AS/400s and
Netfinitys; we use IBM middleware and software, including net.commerce, WebSphere, Java,
Notes/Domino and DB2. IBM's transformation is being led by Dick
Anderson, general manager of IBM Enterprise Web
Management, a corporate organization formed in late 1997.
Enterprise Web Management has a dual reporting structure into
IBM's CIO office and the company's Sales &
IBM's December 1998 e-commerce reached $1.1B,
or $35M a day. Sales were business-to-business
oriented, both indirect through resellers as well as direct to our largest customers, and
were primarily in the hardware area. In 1999, e-commerce revenue is
expected to be between $10-15B. Examples: e-sites (enterprise extranet
sites) with our largest customers, extranets with OEM partners and extranets with Business
In December, we purchased $629M over the Internet. This
is another area where we're on a very fast ramp up. In 1999, IBM expects to procure $12B
in goods and services over the Web, saving $300M. We will also
reduce the number of paper invoices we
process each year from 5M to zero. By replacing more
costly paper processes and implementing Web applications that expand our integration
efforts with our suppliers.
e-care for Customers. In 1998, IBM supported 14M
self-service user session transactions on the Internet, avoiding
approximately $300M in Call Center and field specialist support costs.
IBM receives nearly one million e-mails from
customers every year from the ibm.com
Web site. By automating the categorization, routing, and answering of these e-mails, IBM
is saving $2M annually while increasing our responsiveness to our customers.
In 1998, 15% of IBM's internal education and
training was done through Web-based distance learning.
We estimate that for every 1,000
classroom days converted to distance learning, $500K can be saved.
In 1999, 30% of internal training will be delivered via distance
learning, with anticipated savings of $100M. In the Knowledge Management
area, IBM's award-winning Intellectual Capital Management AssetWeb technology is used by
tens of thousands of IBMers and customers, particularly in IGS, to create, share and reuse
our intellectual capital more productively and profitably.
e-care for Business Partners
IBM's Web-enabled PartnerInfo application allows IBM's more than 45,000 Business Partners
worldwide to access product and marketing information in 10 languages.
PartnerInfo's commerce capability, PartnerCommerce, provides Business Partners the ability
to check on supply status, purchase products, and track orders on the Web.
Features like QuickShip and IBM Global Finance's Internet Financing tool
offer overnight delivery and online financing approval.
In 1999, IBM Business Partners will be able to purchase 1,800,
or nearly all, IBM products on the Web.
e-care for Influencers
IBM provides key influencers, including the press, IT consultants, financial analysts and
shareholders, and prospective employees, with tailored Web sites, providing easy and
worldwide access to information.
IBM currently holds quarterly earnings calls with security analysts on
IBM's Investor Relations site gets more than 100,000 page views per month, spiking to
500,000 around quarterly earnings.
IBM's Press Room for the media offers access to company press releases, executive
biographies and speeches, high-resolution photography and a worldwide database of press
reps by beat. The site gets more than 160,000 page views per month.
The seventh area we're working on is how we use ibm.com and the Internet in general to further the IBM brand
and our marketing objectives. This includes our Internet
advertising, sponsorships like the upcoming Grammy Awards, as well as Web-enabling our
sales collateral, co-op advertising and other materials with IBM Business Partners.