© 2002 IBM Corporation

Emerging Solutions

Dynamic Digital Merchandizing

what is Digital Media ?

Images and graphicsVideo Audio

For entertainment

For business

Digital Media Solutions

The digital media lifecycle

Create ManageDistribute& Transact

All digital media moves through the same lifecycle

Planning, creating, producing and encoding information and unstructured assets such as video, audio, animation and images.

Securely licensing, selling, and delivering digital content for business across multiple devices and delivery channels

Managing the workflow, processing production, storage and retrieval of digital media, as well as the cataloging, indexing and annotation of original content

Digital Media Solutions

Case Study: McDonalds - Netherlands

Complete solution for restaurants:

• Dynamic menu boards

• Plasma screen advertising

• Kiosk ordering – including Drive Thru’

• Video-Corner entertainment

• Interactive E-Learning for Employees

• POS related Dynamic Instore Merchandising

• Wireless services

• Security

Digital Media Solutions

Restaurant – dynamic menu & advertisement

• Inventory Control

• Persuasive communications at time of customer decision

• Customer responsiveness to promotion

• Cost reduction

Smithsonian Air & Space MuseumPlasma Merchandising/

Menu Board Solution

Digital Media Solutions

Significant Business Impact

* QSR results based on actual results from May 2001 – April 2002 in an expanding QSR company compared with control stores and prior period results. Customer Satisfaction measures are from February 2002 CCF Digital Merchandising Research.

Source:

Same store sales vs. prior year increased 8% 5.4 percentage-point gain in Restaurant Operating Profit

Combos maintained 28% post-digital increaseDesserts incidence maintained 47% post-digital increase

Credit Card Usage increased by 32%

Soft drink Incidence increased 20 – 30%

Customer satisfaction improvement resulting from increase in order accuracy, speed of execution, and overall improved service

2% decrease in food costs due to better menu management

Outlet Performance

Profitable Transactions

Featured Credit Card Promotions

Featured Beverage Promotions

Brand Experience

Food Costs

Same store sales vs. prior year increased 8% 5.4 percentage-point gain in Restaurant Operating Profit

Combos maintained 28% post-digital increaseDesserts incidence maintained 47% post-digital increase

Credit Card Usage increased by 32%

Soft drink Incidence increased 20 – 30%

Customer satisfaction improvement resulting from increase in order accuracy, speed of execution, and overall improved service

2% decrease in food costs due to better menu management

Outlet Performance

Profitable Transactions

Featured Credit Card Promotions

Featured Beverage Promotions

Brand Experience

Food Costs

Digital Media Solutions

Retail Bank – in-branch digital advertisement

Compelling, targeted, on-demand messaging at point of decision

Additional revenue stream with leased ad space

Re-purpose marketing material for new channels

• 70% of consumers make purchase decisions after they arrive at the outlet• 75% of consumers say POP influences their decision to purchase

Solution –

centralized control of creation, scheduling, distribution, and play-out of dynamic marketing information to hundreds or thousands of stores and to any type of display device.

Digital Media Solutions

Department Store Movie Theatre Retail Bank Shopping Mall Supermarket Train / subway stations Fast food Restaurant….. With billboard / menu space

Dynamic Digital Merchandising

Value Propositions

Increase Revenue and Reduce Costs

Improve Customer Shopping Experience

Complete Control of Billboard Space

Digital Media Solutions

Digital Promotion Effectiveness…

© 2002 IBM Corporation

Emerging Solutions

Antenna

Tag

IntermecUAP-2100

Reader

RFID

Digital Media

Emerging Solutions

Pervasive capabilities and your business

The pervasive revolution will be disruptive – it will impact your business

Differentiation and competition based on pervasive capabilities is occurring today

Where is your business?

Emerging Solutions

Why IBM ?

Hardware & Software

WebSphere, WESM, WEA, wBI, MQ

Series, DB2, xSeries, pSeries, storage, …

Know-howBusiness Consulting Services,

Systems Integrations, High Volume systems, High Availability, Telecom

Infrastructure on demand

eBusiness on Demand, hosting, managed storage, and network management

Technology WDE and SPDE

architecture, research, patent leader, test labs

Open Standards 3GPP, MMS, SMS, WAP,

SMPP, HTTP, SOAP, Parlay, SIP

Partnerships Air2Web, QPASS, Openwave,

Nokia, Real Networks, Sun, Cisco, Veritas

on demand

© 2002 IBM Corporation

Emerging Solutions

Thank You