Post on 18-Nov-2014
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1 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Online Survey ResultsSegmented by SelfSegmented by Self--Reported Total SalesReported Total Sales
388 total responses
2 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Guy BlissettWholesale Distribution LeadIBMGuy.Blissett@us.ibm.com(917) 224-9868
Guy BlissettWholesale Distribution LeadIBMGuy.Blissett@us.ibm.com(917) 224-9868
Leading distributors are taking decisive actions and investing toposition themselves for a complex future
Decisive Actions for an Uncertain EconomyDecisive Actions for an Uncertain EconomyLatest iteration ofFacing the Forces of ChangeFacing the Forces of Change®
Available via the N.A.W. website:http://www.naw.org/
3 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Total Sales segmentations
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Notes:
• Number of respondents to each question varies… see Sample Size figure oneach chart for specifics
• Y-axis scale differs from chart to chart… avoid using visual comparisons
• Each chart is an embedded Excel file
Notes:
• Number of respondents to each question varies… see Sample Size figure oneach chart for specifics
• Y-axis scale differs from chart to chart… avoid using visual comparisons
• Each chart is an embedded Excel file
4 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Online survey participantTitle
67%
17%
8% 8%
55%
32%
6% 7%
58%
29%
7% 6%
38% 38%
5%
19%
37%
43%
11%9%
0%
10%
20%
30%
40%
50%
60%
70%
Chief Executive Off icer /Chief Operating Off icer /Other C-suite / President
Director / Vice President Regional / Branch / SalesManager
Other (describe incomments box)
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 365
5 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Online survey participantPrimary responsibility
72%
19%
2% 1% 2% 3%0% 1%
75%
15%
0% 0% 1%6%
0%3%
63%
20%
1% 2% 0%
12%
0% 2%
70%
10%5%
10%
0% 0% 0%5%
46%
23%
0%
9%
0% 0%3%
20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Executive /M anagement
Sales /M arketing /
DemandFulfillment
Custo merService
Supply Chain /Lo gistics
P ro curement Finance /A cco unting
Info rmatio nTechno lo gy
Other(describe inco mments
bo x)
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 363
6 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Online survey participantOrganization size (Total Annual Sales)
100%
0% 0% 0% 0% 0%0%
100%
0% 0% 0% 0%0% 0%
100%
0% 0% 0%0% 0% 0%
100%
0% 0%0% 0% 0% 0%
43%
57%
0%
20%
40%
60%
80%
100%
120%
Less than $20million
$20 million to$50 million
$50 million to$250 million
$250 million to$500 million
$500 million to$1 billion
$1 billion or more
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 367
7 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Online survey participantOwnership structure
99%
1%
100%
0%
95%
5%
85%
15%
53%47%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Privately Held Publicly Traded
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 360
8 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Online survey participantGeographic sales coverage
25%
37%
18%21%
16%
51%
19%14%
4%
44%41%
10%
0%
30%
45%
25%
0%
9%
42%
48%
0%
10%
20%
30%
40%
50%
60%
Local: We servecustomers w ithin a single,
local geographic market
Regional: We servecustomers w ithin multiplegeographic markets in a
single region of NorthAmerica
Multi-Regional / National:We serve customers inmultiple regions of North
America
Multi-National: We servecustomers both inside
and outside NorthAmerica
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 355
9 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Online survey participantOrganization’s majority customer type
28%
34%
7%4%
1% 2% 2%
20%
36%
29%
18%
0%3% 3% 2%
9%
33%31%
24%
0%2% 1% 0%
9%11%
47%
21%
0%
5%
0% 0%
16%
39%
18%
24%
0%3%
0% 0%
15%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Co ntracto rs Industrialmanufacturing
facilit ies
Retail sto res Co mmercialfacilit ies
Health carepro vider
Independentand chain
restaurants,cafeterias
No n-pro fit andGo vernmentinstitutio ns
Otherwho lesaler-distributo rs
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 347
10 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Online survey participantOrganization’s type of sales
48%
39%
14%
40%
46%
15%
56%
34%
11%
41%
29% 29%
63%
30%
7%
0%
10%
20%
30%
40%
50%
60%
70%
General Line Firm: 90% of salesfrom more than f ive lines of trade
Specialty Firm: 90% of sales f romtw o to f ive lines of trade
Limited Firm: 90% of sales f rom asingle line of trade
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 342
11 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Online survey participantOrganization’s primary products
20% 19%
5%
15%
21%19%18%
22%
3%
19%
30%
7%
18% 19%
4%
21%
26%
12%
28% 28%
0%
17% 17%
11%
23%
13%
0%
20%
27%
17%
0%
5%
10%
15%
20%
25%
30%
35%
MRO:maintenance,
repair, andoperations of
customer facilities
OEM: Componentsincorporated intoanother product
Equipment: Capitalequipmentproducts
Resale for retail:Finished products
for resale toconsumers
Resale forservice: Finished
products toservice
customer’scustomer
Other (describe incomments box)
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 340
12 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
35%
46%
19%
38%
52%
10%
37%
53%
10%7%
79%
14%
33%
54%
13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Our company has no plans to dothis
Our company does this today Our company does not do thistoday, but w ill by 2015
Company Strategy:Sell product and offer fee-based services
Sample Size = 285
13 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Company Strategy:Services available to customers even if no product is purchased
46% 44%
10%
45%49%
5%
53%
32%
15%21%
64%
14%
54%
42%
4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Our company has no plans to dothis
Our company does this today Our company does not do thistoday, but w ill by 2015
Sample Size = 278
14 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Company Strategy:Offer third-party logistics to customers as a fee-based service
65%
23%
12%
62%
25%
13%
60%
27%
13%
29%
43%
29%33%
42%
25%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Our company has no plans to dothis
Our company does this today Our company does not do thistoday, but w ill by 2015
Sample Size = 276
15 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Company Strategy:Optimize network design (i.e., #, size, location of branches, DCs)
49%
36%
15%
24%
51%
25%27%
55%
19%21%
71%
7%13%
78%
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Our company has no plans to dothis
Our company does this today Our company does not do thistoday, but w ill by 2015
Sample Size = 271
16 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Company Strategy:Outsource warehouse operations to a third-party
89%
10%
1%
89%
9%2%
87%
4%9%
93%
0%7%
86%
9%5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Our company has no plans to dothis
Our company does this today Our company does not do thistoday, but w ill by 2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 270
17 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Company Strategy:Outsource additional non-core administrative activities
63%
24%
13%
55%
34%
11%
66%
28%
5%
71%
21%
7%
71%
24%
5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Our company has no plans to dothis
Our company does this today Our company does not do thistoday, but w ill by 2015
Sample Size = 272
18 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Company Strategy:Outsource elements of IT infrastructure (e.g., applications, server)
36%
49%
15%
45%40%
15%
47%
32%
20%
36%
50%
14%
55%
36%
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Our company has no plans to dothis
Our company does this today Our company does not do thistoday, but w ill by 2015
Sample Size = 272
19 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Company Strategy:Create and/or grow presence in geographic markets outside U.S.
56%
29%
16%
65%
20%15%
61%
27%
12%
38%
54%
8%
25%
63%
13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Our company has no plans to dothis
Our company does this today Our company does not do thistoday, but w ill by 2015
Sample Size = 273
20 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Company Strategy:Stop doing business with highly unprofitable customers
7%
82%
11%9%
70%
21%
8%
71%
21%
7%
79%
14%9%
78%
13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Our company has no plans to dothis
Our company does this today Our company does not do thistoday, but w ill by 2015
Sample Size = 278
21 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Company Strategy:Manufacture our own private-label products in an overseas plant
76%
15%9%
75%
15%11%
64%
22%
13%
71%
21%
7%
55%
36%
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Our company has no plans to dothis
Our company does this today Our company does not do thistoday, but w ill by 2015
Sample Size = 272
22 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Company Strategy:Market our own private label products
46%39%
15%
39%46%
14%
33%
49%
17%
29%
50%
21%18%
68%
14%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Our company has no plans to dothis
Our company does this today Our company does not do thistoday, but w ill by 2015
Sample Size = 275
23 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Company Strategy:Participate in distributor buying group/ marketing alliance
29%
56%
15%
25%
69%
5%
29%
60%
12%
64%
29%
7%
41%
55%
5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Our company has no plans to dothis
Our company does this today Our company does not do thistoday, but w ill by 2015
Sample Size = 282
24 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Company Strategy:Create strategy for current and future human capital requirements
24%
48%
28%
13%
55%
33%
10%
70%
19%
7%
86%
7%8%
79%
13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Our company has no plans to dothis
Our company does this today Our company does not do thistoday, but w ill by 2015
Sample Size = 276
25 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Today:Increased product traceability
49%
23%
29%
48%
34%
17%
45%
29%25%
57%
21% 21%
29%
33%
38%
0%
10%
20%
30%
40%
50%
60%
Less signif icant Moderately signif icant More signif icant
Sample Size = 273
26 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Future:Increased product traceability
36% 35%
30%
38%
25%
37%
30%
38%
32%
50%
33%
17%
26%
21%
53%
0%
10%
20%
30%
40%
50%
60%
Less signif icant Moderately signif icant More signif icant
Sample Size = 230
27 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Today:Growth of green business segments
25%
48%
27%24%
40%36%
21%
49%
29%29%
57%
14%14%
24%
62%
0%
10%
20%
30%
40%
50%
60%
70%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 274
28 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Future:Growth of green business segments
16%
46%
38%
14%
43% 43%
16%
32%
52%
17%
58%
25%
5%
37%
58%
0%
10%
20%
30%
40%
50%
60%
Less signif icant Moderately signif icant More signif icant
Sample Size = 232
29 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Today:Disintermediation
25% 24%24%
34%
41%
28%
39%
33%
43%
21%
36%
15%
45%
40%
0%
10%
20%
30%
40%
50%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 270
30 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Future:Disintermediation
16%
38%
46%
15%
48%
37%
32%35% 33%
25%
33%
42%
11%
58%
32%
0%
10%
20%
30%
40%
50%
60%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 231
31 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Today:Private label products
33%
41%
26%
33%
38%
29%28%
40%
32%
43%
14%
43%
15%
40%
45%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Less signif icant Moderately signif icant More signif icant
Col
umn
%Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 271
32 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Future:Private label products
25%
39%36%
29%31%
40%
24%
41%
35%
25% 25%
50%
5%
42%
53%
0%
10%
20%
30%
40%
50%
60%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 231
33 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Today:End customer consolidation
21%
50%
29%
19%
43%
38%
16%
56%
28%
7%
50%
43%
25%
35%
40%
0%
10%
20%
30%
40%
50%
60%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 271
34 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Future:End customer consolidation
17%
42% 42%
8%
44%48%
14%
49%
37%
17%
25%
58%
5%
47% 47%
0%
10%
20%
30%
40%
50%
60%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 230
35 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Today:Supplier consolidation
21%
50%
29%
12%
55%
33%
16%
57%
27%
14%
50%
36%
19%
43%
38%
0%
10%
20%
30%
40%
50%
60%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 272
36 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Future:Supplier consolidation
6%
52%
42%
10%
42%
48%
13%
51%
37%
25% 25%
50%
5%
32%
63%
0%
10%
20%
30%
40%
50%
60%
70%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 229
37 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Today:Industry consolidation
14%
41%
46%
10%
45% 45%
15%
45%
40%
14%
43% 43%
15%
40%
45%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 270
38 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Future:Industry consolidation
6%
37%
57%
4%
52%
44%
5%
44%
51%
0%
42%
58%
5%
26%
68%
0%
10%
20%
30%
40%
50%
60%
70%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 230
39 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Today:Overseas competitor expansion
36% 35%
30%33%
41%
26%
43% 42%
15%
58%
25%
17%
37%
47%
16%
0%
10%
20%
30%
40%
50%
60%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 267
40 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Future:Overseas competitor expansion
24%
37%39%
23%
52%
25%
37%
41%
22%25%
50%
25%
37%
21%
42%
0%
10%
20%
30%
40%
50%
60%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 230
41 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Today:Macro-economic impact of crisis
7%
26%
67%
3%
28%
69%
7%
27%
67%
15%
23%
62%
5%
20%
75%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 269
42 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Future:Macro-economic impact of crisis
16%
51%
34%
15%
38%
46%
25%
43%
32%
25%
42%
33%37%
21%
42%
0%
10%
20%
30%
40%
50%
60%
Less signif icant Moderately signif icant More signif icant
Col
umn
%Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 229
43 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Today:U.S. economy structural shift
12%
34%
55%
7%
41%
52%
11%
45% 44%
23%
31%
46%
25%
30%
45%
0%
10%
20%
30%
40%
50%
60%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 270
44 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Future:U.S. economy structural shift
6%
49%
45%
4%
54%
42%
14%
48%
38%
17%
42% 42%
16%
37%
47%
0%
10%
20%
30%
40%
50%
60%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 229
45 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Today:Government regulation
10%
39%
51%
9%
40%
52%
5%
41%
53%
38%
15%
46%
10%
30%
60%
0%
10%
20%
30%
40%
50%
60%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 270
46 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Future:Government regulation
6%
34%
60%
8%
29%
63%
6%
32%
62%
8%
42%
50%
5%
32%
63%
0%
10%
20%
30%
40%
50%
60%
70%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 229
47 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Today:Product complexity
70%
22%
8%
62%
28%
10%
65%
29%
5%
57%
36%
7%
70%
25%
5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 271
48 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Factors Impacting - Future:Product Complexity
60%
27%
13%
42%38%
19%
43% 41%
16%
33%
58%
8%
33%
61%
6%
0%
10%
20%
30%
40%
50%
60%
70%
Less signif icant Moderately signif icant More signif icant
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 229
49 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Headcount Today
1,880.482.235.115.95.5Administration /Management
2,081.0154.968.618.57.0Warehouse /Transportation
1,954.189.149.315.27.0Outside sales force
1,933.2374.557.921.17.2Customer service andinside sales force
$500 millionand over
$250 million to$500 million
$50 million to$250 million
$20 million to$50 million
Less than $20millionHeadcount
50 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Headcount Trend:Customer service and inside sales force
25%
49%
25%26%
42%
32%36%
19%
46%
17%
42% 42%
32% 32%37%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Decreasing Flat Increasing
Sample Size = 231
51 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Headcount Trend:Outside sales force
24%
36%40%
20%14%
66%
25%29%
46%
8%
50%
42%
28% 28%
44%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Decreasing Flat Increasing
Sample Size = 230
52 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Headcount Trend:Warehouse / transportation
38%
50%
12%
33%
51%
16%
37% 39%
24%25%
50%
25%26%
53%
21%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Decreasing Flat Increasing
Sample Size = 229
53 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Headcount Trend:Administration / Management
30%
67%
3%
36%
50%
14%
40% 40%
20%
50%
17%
33%37%
58%
5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Decreasing Flat Increasing
Sample Size = 231
54 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Incremental Business Needed…to increase Customer Service & Inside Sales Force
11%
47%42%
25%
58%
17%
34%
52%
13%
33%
58%
8%
47% 47%
5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0-10% sales increase 10-25%sales increase Over 25% sales increase
Sample Size = 231
55 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Incremental Business Needed…… to increase Outside Sales Force
16%
43% 41%
23%
63%
15%
30%
54%
16%
42% 42%
17%
53%
42%
5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0-10% sales increase 10-25%sales increase Over 25% sales increase
Sample Size = 231
56 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Incremental Business Needed…… to increase Warehouse / Transportation
18%
41% 41%
23%
53%
23%
35%
57%
8%
17%
58%
25%
47%53%
0%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0-10% sales increase 10-25%sales increase Over 25% sales increase
Sample Size = 228
57 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Incremental Business Needed…… to increase Administration / Management
5%11%
84%
13%
29%
58%
8%
33%
59%
17%
25%
58%
21%
32%
47%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0-10% sales increase 10-25%sales increase Over 25% sales increase
Sample Size = 231
58 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
8%
20%
72%
0%
23%
77%
5%
25%
70%
0%
9%
91%
0%5%
95%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 222
IMPORTANCE:Assessing sales force productivity
59 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
17%
47%
36%
2%
55%
43%
12%
51%
37%
0%
80%
20%
7%
64%
29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 202
PERFORMANCE:Assessing sales force productivity
60 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
22%
41%37%
9%
38%
53%
15%
36%
49%
0%
36%
64%
11%
32%
58%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 221
IMPORTANCE:Assessing warehouse / transportation personnel productivity
61 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
18%
53%
29%
14%
64%
23%
12%
47%40%
0%
70%
30%
14%
36%
50%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 201
PERFORMANCE:Assessing warehouse / transportation personnel productivity
62 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
7%
33%
60%
2%
32%
66%
2%
34%
64%
0%
36%
64%
5%
26%
68%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 222
IMPORTANCE:Assessing customer service personnel productivity
63 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
14%
58%
27%
5%
61%
34%
9%
61%
30%
20%
70%
10%14%
50%
36%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 202
PERFORMANCE:Assessing customer service personnel productivity
64 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
5%
25%
71%
2%
26%
72%
7%
31%
62%
0%
18%
82%
0%5%
95%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 222
IMPORTANCE:Assessing product profitability
65 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
4%
47% 49%
5%
57%
39%
5%
65%
30%
10%
40%
50%
0%
50% 50%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 201
PERFORMANCE:Assessing product profitability
66 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
22%29%
49%
6%
38%
55%
18%
44%38%
9%
27%
64%
16%
53%
32%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 224
IMPORTANCE:Assessing service offering profitability
67 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
25%
55%
21%18%
57%
25%28%
53%
19%
40% 40%
20%
29%
43%
29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 202
PERFORMANCE:Assessing service offering profitability
68 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
8%
36%
56%
4%
32%
64%
8%
38%
54%
0%
27%
73%
0%
26%
74%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 224
IMPORTANCE:Assessing customer profitability
69 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
12%
57%
31%
16%
59%
25%
12%
53%
35%
20%
60%
20%14%
57%
29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 202
PERFORMANCE:Assessing customer profitability
70 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
4%
35%
61%
0%
19%
81%
7%
20%
74%
0%
18%
82%
0%
21%
79%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 223
IMPORTANCE:Optimizing prices
71 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
12%
53%
36%
20%
41% 39%
12%
58%
30%
0%
90%
10%7%
71%
21%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 201
PERFORMANCE:Optimizing prices
72 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
17%23%
61%
2%
21%
77%
5%
21%
74%
0%
18%
82%
0%
32%
68%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 222
IMPORTANCE:Optimizing inventory
73 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
12%
46%42%
9%
50%
41%
9%
53%
39%
20%
50%
30%
7%
36%
57%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 201
PERFORMANCE:Optimizing inventory
74 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
17%
38%
45%
9%
40%
51%
13%
43% 44%
9%
45% 45%
5%
37%
58%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 222
IMPORTANCE:Sensing end product/ service demand
75 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
23%
56%
21%18%
68%
14%
30%
40%
30%30%
50%
20%21%
36%43%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 202
PERFORMANCE:Sensing end product/ service demand
76 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
45%
24%
32%
45%
21%
34%
44%
26%30%
45%
18%
36%32% 32%
37%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 223
IMPORTANCE:Building own brand recognition
77 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
37% 39%
24%
48%
34%
18%
39%
46%
15%
56%
33%
11%
21%
50%
29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 196
PERFORMANCE:Building own brand recognition
78 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
6%
27%
67%
2%
26%
72%
3%
33%
64%
9%
27%
64%
11%
26%
63%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Sample Size = 224
IMPORTANCE:Building company brand/name recognition
79 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
12%
60%
29%
2%
45%52%
4%
61%
35%
20%
50%
30%
7%
64%
29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Sample Size = 202
PERFORMANCE:Building company brand/name recognition
80 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
9% 6%
85%
4%
18%
78%
14% 15%
71%
18%
0%
82%
25%31%
44%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Sample Size = 209
Importance to Gross Profit (TODAY):Purchase at a wholesale discount
81 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
12%8%
80%
5%
16%
80%
11% 13%
76%
0% 0%
100%
38%
13%
50%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Sample Size = 199
Importance to Gross Profit (FUTURE):Purchase at a wholesale discount
82 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
27% 27%
45%
22%18%
60%
22%19%
59%
0%
36%
64%
25%
6%
69%
0%
10%
20%
30%
40%
50%
60%
70%
Less important Moderately important More important
Sample Size = 208
Importance to Gross Profit (TODAY):Supplier rebates based on total purchases in a time period
83 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
23%
30%
47%
16%
23%
61%
24% 25%
51%
0%
30%
70%
31%
6%
63%
0%
10%
20%
30%
40%
50%
60%
70%
Less important Moderately important More important
Sample Size = 198
Importance to Gross Profit (FUTURE):Supplier rebates based on total purchases in a time period
84 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
12%
31%
58%
11%
24%
64%
8%
29%
63%
9%
18%
73%
13%
31%
56%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less important Moderately important More important
Sample Size = 209
Importance to Gross Profit (TODAY):Supplier discounts based on volume
85 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
16%
23%
61%
7%
23%
70%
13%
25%
62%
0%
30%
70%
6%
25%
69%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less important Moderately important More important
Sample Size = 199
Importance to Gross Profit (FUTURE):Supplier discounts based on volume
86 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
32%
42%
26%29%
36% 36%32%
42%
25%27%
9%
64%
13%
56%
31%
0%
10%
20%
30%
40%
50%
60%
70%
Less important Moderately important More important
Sample Size = 209
Importance to Gross Profit (TODAY):Supplier discounts based on the performance of activities
87 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
20%
34%
46%
23%
30%
48%
25%
40%
35%
20%
30%
50%
19%
31%
50%
0%
10%
20%
30%
40%
50%
60%
70%
Less important Moderately important More important
Sample Size = 199
Importance to Gross Profit (FUTURE):Supplier discounts based on the performance of activities
88 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
33%
37%
29%
20%
31%
49%
39%36%
25%
18%
36%
45%
31% 31%
38%
0%
10%
20%
30%
40%
50%
Less important Moderately important More important
Sample Size = 209
Importance to Gross Profit (TODAY):Co-op marketing funds from suppliers
89 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
36%
31% 32%
23%
34%
43%
33%
40%
27%
20%
40% 40%
31% 31%
38%
0%
10%
20%
30%
40%
50%
Less important Moderately important More important
Sample Size = 199
Importance to Gross Profit (FUTURE):Co-op marketing funds from suppliers
90 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
27%
36% 37%
20%
42%38%
29%
47%
24%18%
55%
27%
6%
75%
19%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less important Moderately important More important
Sample Size = 209
Importance to Gross Profit (TODAY):Purchasing extra product in advance of price increase
91 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
26%
36% 38%
27%
39%34%
24%
44%
33%
10%
70%
20%19%
44%
38%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less important Moderately important More important
Sample Size = 199
Importance to Gross Profit (FUTURE):Purchasing extra product in advance of price increase
92 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
5%
12%
83%
4%
16%
80%
3%
19%
78%
0%
27%
73%
6%
38%
56%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Less important Moderately important More important
Sample Size = 209
Importance to Gross Profit (TODAY):Product mark-ups to customers
93 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
4%
16%
80%
5%
14%
82%
4%
24%
73%
10% 10%
80%
6%
50%
44%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Less important Moderately important More important
Sample Size = 199
Importance to Gross Profit (FUTURE):\Product mark-ups to customers
94 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
37%41%
22%
38%
42%
20%
56%
29%
15%
45% 45%
9%
44%
31%
25%
0%
10%
20%
30%
40%
50%
60%
Less important Moderately important More important
Sample Size = 209
Importance to Gross Profit - (TODAY):Fee-for-service payments from customers
95 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
23%
38% 39%
18%
32%
50%
36%35%
29%
10%
60%
30%
44%
25%
31%
0%
10%
20%
30%
40%
50%
60%
Less important Moderately important More important
Sample Size = 199
Importance to Gross Profit - FUTURE:Fee-for-service payments from customers
96 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
60%
28%
12%
56%
36%
9%
71%
20%
8%
36%
27%
36%
50%
44%
6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less important Moderately important More important
Sample Size = 209
Importance to Gross Profit (TODAY):Fee-for-service payments from suppliers
97 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
41%
34%
25%
30%
50%
20%
51%
35%
15%
40%
10%
50%
38% 38%
25%
0%
10%
20%
30%
40%
50%
60%
Less important Moderately important More important
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 198
Importance to Gross Profit (FUTURE):Fee-for-service payments from suppliers
98 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
68%
15% 16%
67%
19%14%
70%
11%
20%
50%
20%
30%
62%
15%
23%
0%
10%
20%
30%
40%
50%
60%
70%
Do not expect 3PL to be acompetitive threat
3PL are a competitive threat today 3PL are not currently a competitivethreat… w ill be by 2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 194
3PL ACTIVITY: Warehousing
99 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
51%
21%
29%
58%
19%23%
70%
11%
20%
67%
0%
33%
46%
31%
23%
0%
10%
20%
30%
40%
50%
60%
70%
Do not expect 3PL to be acompetitive threat
3PL are a competitive threat today 3PL are not currently a competitivethreat… w ill be by 2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 194
3PL ACTIVITY : Order fulfillment to Customers
100 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
70%
16%14%
70%
19%
12%
75%
11%15%
56%
0%
44%
54%
23% 23%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Do not expect 3PL to be acompetitive threat
3PL are a competitive threat today 3PL are not currently a competitivethreat… w ill be by 2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 193
3PL ACTIVITY : Kitting/Assembling/Packaging
101 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
64%
18% 18%
44%
33%
23%
56%
24%20%
44%
11%
44%
62%
23%
15%
0%
10%
20%
30%
40%
50%
60%
70%
Do not expect 3PL to be acompetitive threat
3PL are a competitive threat today 3PL are not currently a competitivethreat… w ill be by 2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 193
3PL ACTIVITY : Transportation
102 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
71%
8%
21%
77%
16%
7%
76%
5%
18%
100%
0% 0%
69%
15% 15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Do not expect 3PL to be acompetitive threat
3PL are a competitive threat today 3PL are not currently a competitivethreat… w ill be by 2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 193
3PL ACTIVITY : After-sales service and support
103 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
30%
47%
23%
14%
68%
19%
26%
60%
13%
33%
67%
0%
23%
69%
8%
0%
10%
20%
30%
40%
50%
60%
70%
Our largest supplier has no plansto do this
Our largest supplier does thistoday
Our largest supplier does not dothis now , but w ill by 2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 178
CHANNEL STRATEGY: Work with our company to develop jointservice to sell to end users
104 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
48%
27% 24%
33% 36%31%
45%
36%
19%22%
56%
22%
31%
62%
8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Our largest supplier has no plansto do this
Our largest supplier does thistoday
Our largest supplier does not dothis now , but w ill by 2015
Col
umn
%
Sample Size = 177
CHANNEL STRATEGY : Reduce the number of distributors thatthis supplier sells through
105 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
29%
52%
18%
11%
61%
28%
15%
70%
15%
0%
89%
11%15%
62%
23%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Our largest supplier has no plansto do this
Our largest supplier does thistoday
Our largest supplier does not dothis now , but w ill by 2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 176
CHANNEL STRATEGY : Ask our company to share inventoryand/or point of sale information
106 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
36%
52%
12%
25%
64%
11%
28%
60%
11%
0%
89%
11%
23%
69%
8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Our largest supplier has no plansto do this
Our largest supplier does thistoday
Our largest supplier does not dothis now , but w ill by 2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 177
CHANNEL STRATEGY : Market directly to our customers
107 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
55%
36%
9%
42%
31%28%
62%
27%
12%
44%
56%
0%
62%
38%
0%0%
10%
20%
30%
40%
50%
60%
70%
Our largest supplier has no plansto do this
Our largest supplier does thistoday
Our largest supplier does not dothis now , but w ill by 2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 176
CHANNEL STRATEGY : Performs some or all wholesaler-distributor functions themselves
108 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Estimated % of SalesToday vs. Future
19%14%15%9%19%15%9%4%9%4%Electronic DataInterchange (EDI)
9%14%10%9%20%23%22%24%21%24%Face to face withoutside sales rep
43%46%40%56%43%50%42%52%47%56%Mail, email, phone,and/or fax
6%
20%
8%
Today
$500 millionand above
15%
25%
8%
Future
16%
13%
6%
Today
$250 million to<$500 million
13%
23%
7%
Future
2%
6%
11%
Today
$50 million to<$250 million
2%
14%
11%
Future
0%
7%
15%
Today
$20 million to<$50 million
0%
20%
14%
Future
4%
7%
9%
Today
Less than $20million
8%
14%
8%
Future
Other
Online via companyor 3rd party website
Walk-in and countersales
109 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Estimated % of Sales: online
55%50%50%60%90%High
95%35%34%40%90%High
Mean
Mean
25%23%14%20%14%2015
20%13%6%7%7%Today
$500 millionand above
$250 million to< $500 million
$50 million to< $250 million
$20 million to< $50 million
Less than $20million
110 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
48%
32%
21%
31%
50%
19%
60%
35%
6%
56%
33%
11%
36%
45%
18%
0%
10%
20%
30%
40%
50%
60%
70%
Never Majority Majority Today Majority by 2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 171
WAY CUSTOMERS WORK: Require our company to provide newservices without additional margin or fee
111 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
63%
25%
13%
53%
28%
19%
67%
15% 17%
11%
22%
67%
40%
20%
40%
0%
10%
20%
30%
40%
50%
60%
70%
Never Majority Majority Today Majority by 2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 171
WAY CUSTOMERS WORK : Ask for detailed data about theirpurchases from our company
112 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
81%
8%11%
83%
8% 8%
96%
0%4%
89%
0%
11%
82%
0%
18%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Never Majority Majority Today Majority by 2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 172
WAY CUSTOMERS WORK : Eliminate in-person sales calls from ourcompany’s sales force
113 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
77%
11% 13%
83%
3%
14%
87%
4%10%
89%
0%
11%
82%
9% 9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Never Majority Majority Today Majority by 2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 172
WAY CUSTOMERS WORK : Reduce purchases from us because weare not a preferred supplier
114 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
92%
5% 3%
94%
0%6%
98%
0% 2%
89%
0%
11%
91%
0%
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Never Majority Majority Today Majority by 2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 171
WAY CUSTOMERS WORK : Conduct a reverse auction to selectsuppliers for products from our company
115 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
44%
25%
30%
44%
31%
25%
40%37%
23%22%
56%
22%
36%
45%
18%
0%
10%
20%
30%
40%
50%
60%
Never Majority Majority Today Majority by 2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 171
WAY CUSTOMERS WORK : Centralize purchasing authority forbuyers of our products within their organization
116 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Way Customers Work:Standardize brands purchased by different buyers within organization
59%
19%22%
53%
25%22%
54%
27%
19%
33% 33% 33%
45%
27% 27%
0%
10%
20%
30%
40%
50%
60%
Never Majority Majority Today Majority by 2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 171
117 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (TODAY):Advertising in a printed industry magazine
59%
32%
10%
77%
19%
3%
67%
23%
9%
63%
38%
0%
82%
9% 9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Less important Moderately important More important
Sample Size = 156
118 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (2015):Advertising in a printed industry magazine
72%
22%
7%
77%
19%
3%
83%
12%
5%
50%
38%
13%
90%
0%
10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Less important Moderately important More important
Sample Size = 150
119 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (TODAY):Direct mail solicitation
51%
30%
19%
35%
48%
16%
63%
28%
9%
75%
0%
25%
45%
27% 27%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less important Moderately important More important
Sample Size = 156
120 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (2015):Direct mail solicitation
62%
30%
8%
58%
39%
3%
68%
22%
10%
38%
50%
13%
70%
10%
20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less important Moderately important More important
Sample Size = 150
121 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (TODAY):Fax or other telemarketing
56%
30%
14%
65%
29%
6%
59%
36%
5%
63%
25%
13%
64%
27%
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less important Moderately important More important
Sample Size = 157
122 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (2015):Fax or other telemarketing
50%
42%
8%
68%
23%
10%
66%
29%
5%
50%
38%
13%
70%
10%
20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less important Moderately important More important
Sample Size = 150
123 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (TODAY):E-mail marketing
25%
48%
27%26%
52%
23%
49%
33%
19%
25%
38% 38%36%
45%
18%
0%
10%
20%
30%
40%
50%
60%
70%
Less important Moderately important More important
Sample Size = 156
124 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (2015):E-mail marketing
8%
49%
43%
6%
32%
61%
27%
49%
24%
0%
63%
38%
20%
50%
30%
0%
10%
20%
30%
40%
50%
60%
70%
Less important Moderately important More important
Sample Size = 151
125 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (TODAY):In-person sales call
5%
17%
78%
0%
10%
90%
0%
25%
75%
0% 0%
100%
0%
27%
73%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Sample Size = 157
126 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (2015):In-person sales call
3%
28%
68%
6%
29%
65%
0%
44%
56%
0%
50% 50%
0%
50% 50%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less important Moderately important More important
Sample Size = 150
127 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (TODAY):Physical presence at trade show
39%36%
25%
45%
35%
19%
43% 43%
14%13%
63%
25%
0%
82%
18%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Less important Moderately important More important
Sample Size = 158
128 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (2015):Physical presence at trade show
40%37%
23%
55%
29%
16%
44%49%
7%
38%
63%
0%
30%
70%
0%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Less important Moderately important More important
Sample Size = 150
129 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (TODAY):In-person event or seminar
26%
42%
32%
13%
58%
29%
23%
48%
30%
13%
63%
25%
9%
55%
36%
0%
10%
20%
30%
40%
50%
60%
70%
Less important Moderately important More important
Sample Size = 156
130 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (2015):In-person event or seminar
32%35% 33%
29%
55%
16%
29%
54%
17%
38%
63%
0%
20%
40% 40%
0%
10%
20%
30%
40%
50%
60%
70%
Less important Moderately important More important
Sample Size = 150
131 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (TODAY):Our company’s web site
21%
40% 40%
10%
55%
35%
16%
61%
23%
0%
25%
75%
18%
9%
73%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less important Moderately important More important
Sample Size = 157
132 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (2015):Our company’s web site
5%
31%
64%
6%
29%
65%
7%
54%
39%
0%
25%
75%
10%
20%
70%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less important Moderately important More important
Sample Size = 151
133 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (TODAY):Advertising on an industry website
56%
34%
10%
58%
32%
10%
70%
26%
5%
38%
50%
13%
64%
18% 18%
0%
10%
20%
30%
40%
50%
60%
70%
Less important Moderately important More important
Sample Size = 155
134 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (2015):Advertising on an industry website
37%
53%
10%
42%
35%
23%
59%
34%
7%
38%
0%
63%
40% 40%
20%
0%
10%
20%
30%
40%
50%
60%
70%
Less important Moderately important More important
Sample Size = 150
135 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (TODAY):Search engine marketing
29%
42%
29%
42%
29% 29%
42%40%
19%
38%
50%
13%
45% 45%
9%
0%
10%
20%
30%
40%
50%
60%
70%
Less important Moderately important More important
Sample Size = 155
136 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (2015):Search engine marketing
23%
32%
45%
16%
39%
45%
29%
22%
49%
25%
13%
63%
40%
20%
40%
0%
10%
20%
30%
40%
50%
60%
70%
Less important Moderately important More important
Sample Size = 150
137 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (TODAY):Webinars
66%
24%
10%
45%
39%
16%
67%
21%
12%
50% 50%
0%
55%
36%
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less important Moderately important More important
Sample Size = 155
138 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (2015):Webinars
37%40%
23%
29%
35% 35%37% 37%
27%
0%
75%
25%
40%
30% 30%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less important Moderately important More important
Sample Size = 150
139 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (TODAY):Participate in online networks
68%
24%
8%
65%
19%16%
81%
14%
5%
63%
25%
13%
73%
27%
0%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Less important Moderately important More important
Sample Size = 156
140 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Method to Generate New Sales (2015):Participate in online networks
36%
42%
22%16%
32%
52%49%
37%
15%13%
63%
25%
40% 40%
20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Less important Moderately important More important
Sample Size = 149
141 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Role of Information TechnologyActual
21%27%
16%
34%
2%3%
16%
26%
42%
13%9%
16% 14%
50%
11%
0%
13% 13%
63%
13%
0%
18%
9%
64%
9%
0%
10%
20%
30%
40%
50%
60%
70%
No clearly def inedrole for IT w ithin
organization
Take a conservativeapproach; use only
proven, maturetechnologies
Stay current on IT;w ithout getting toofar ahead of our
competition
IT is an essentialinvestment area;
invest in leading, butproven,
technologies
Use IT as acompetitive w eapon;
compete at thecutting edge of
innovation
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 156
142 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Role of Information TechnologyPreferred
5%
11%
23% 21%
40%
0% 0%
19%
52%
29%
0%5%
11%
52%
32%
0% 0% 0%
50% 50%
0% 0%
9%
64%
27%
0%
10%
20%
30%
40%
50%
60%
70%
No clearly def inedrole for IT w ithin
organization
Take a conservativeapproach; use only
proven, maturetechnologies
Stay current on IT;w ithout getting toofar ahead of our
competition
IT is an essentialinvestment area;
invest in leading, butproven,
technologies
Use IT as acompetitive w eapon;
compete at thecutting edge of
innovatio
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 156
143 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Software Usage:ERP System
14%
31%
14%
22%19%17%
20% 20%27%
17%
9%
23%
7%
28%33%
0%
13%
0%
13%
75%
10%
0%
10%
70%
10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Not familiar w ith thissof tw are application
No plans to use thissof tw are application
Not currently using -w ill start using by
2015
Currently using, butw ill need upgrade/
change to meetneeds in 2015
Currently using andfully meets our
needs now and in2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 149
144 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Software Usage:Warehouse Management System (WMS)
4%
40%
18%
28%
11%
0%
16%
35%32%
16%
0%
23%
9%
26%
42%
0% 0%
25%
13%
63%
0% 0%
20%
40% 40%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Not familiar w ith thissof tw are application
No plans to use thissof tw are application
Not currently using -w ill start using by
2015
Currently using, butw ill need upgrade/
change to meetneeds in 2015
Currently using andfully meets our
needs now and in2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 149
145 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Software Usage:Transportation Management System (TMS)
7%
61%
25%
4% 4%3%
39%
29%
19%
10%
0%
37%
19% 16%
28%
0%
50%
25% 25%
0%0%
40%
20% 20% 20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Not familiar w ith thissof tw are application
No plans to use thissof tw are application
Not currently using -w ill start using by
2015
Currently using, butw ill need upgrade/
change to meetneeds in 2015
Currently using andfully meets our
needs now and in2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 148
146 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Software Usage:Customer Relationship Management (CRM)
5% 5%
41%
33%
16%
3%
13%
32%35%
16%
0%
14%
40%
33%
14%
0% 0%
38%
50%
13%10%
0%
50%
30%
10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Not familiar w ith thissof tw are application
No plans to use thissof tw are application
Not currently using -w ill start using by
2015
Currently using, butw ill need upgrade/
change to meetneeds in 2015
Currently using andfully meets our
needs now and in2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 150
147 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Software Usage:Sales Force Automation (SFA)
12%19%
43%
17%
9%10%
26%
39%
13% 13%7%
33%
23% 23%
14%
0%
13%
25%
63%
0%0%
10%
50%
20% 20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Not familiar w ith thissof tw are application
No plans to use thissof tw are application
Not currently using -w ill start using by
2015
Currently using, butw ill need upgrade/
change to meetneeds in 2015
Currently using andfully meets our
needs now and in2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 150
148 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Software Usage:Price Optimization
18% 19%
37%
14% 12%10%16%
58%
13%
3%2%
21%
36%
17%
24%
0%
13% 13%
63%
13%
0% 0%
44% 44%
11%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Not familiar w ith thissof tw are application
No plans to use thissof tw are application
Not currently using -w ill start using by
2015
Currently using, butw ill need upgrade/
change to meetneeds in 2015
Currently using andfully meets our
needs now and in2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 147
149 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Software Usage:Internet storefront for web-based ordering
7%
16%
47%
10%
2%
16%
30%
21%
75%
10%
20%
31%
42%
32%
16%
30%
25%
70%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Not familiar with No plans to use Not currently using- will by 2015
Currently using -upgrade needed
by 2015
Currently using -no upgrade needed
Sample Size = 150
150 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Software Usage:Inventory Management
10%
26%
7%
29% 28%
6%3%
32%35%
23%
0%
12%
19%
33% 36%
13%
0% 0%
25%
63%
10%
0% 0%
50%
40%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Not familiar w ith thissof tw are application
No plans to use thissof tw are application
Not currently using -w ill start using by
2015
Currently using, butw ill need upgrade/
change to meetneeds in 2015
Currently using andfully meets our
needs now and in2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 149
151 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Software Usage:Inventory Optimization
25% 23% 25%19%
9%
16%13%
42%
13%16%14% 12%
21%
30%
23%
13%
0% 0%
38%
50%
11% 11%
56%
0%
22%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Not familiar w ith thissof tw are application
No plans to use thissof tw are application
Not currently using -w ill start using by
2015
Currently using, butw ill need upgrade/
change to meetneeds in 2015
Currently using andfully meets our
needs now and in2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 148
152 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Software Usage:Vendor Managed Inventory (VMI)
11%
43%
16%21%
9%10%
35%
26%
16%13%
0%
30%
16%
28% 26%
0%
25%
38%
25%
13%10%
0%
30%
40%
20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Not familiar w ith thissof tw are application
No plans to use thissof tw are application
Not currently using -w ill start using by
2015
Currently using, butw ill need upgrade/
change to meetneeds in 2015
Currently using andfully meets our
needs now and in2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 148
153 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Software Usage:Product Catalog Management
18%
40%
28%
7% 7%3%
35%
19%
35%
6%5%
21% 19%
43%
12%
0%
13%
38%
25% 25%
0% 0%
11%
56%
33%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Not familiar w ith thissof tw are application
No plans to use thissof tw are application
Not currently using -w ill start using by
2015
Currently using, butw ill need upgrade/
change to meetneeds in 2015
Currently using andfully meets our
needs now and in2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 147
154 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Software Usage:Master Data Management
29%34%
14%18%
5%
23%26%
29%
19%
3%
16%21% 23% 21% 19%
0% 0%
38% 38%
25%
0% 0%
44%
33%
22%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Not familiar w ith thissof tw are application
No plans to use thissof tw are application
Not currently using -w ill start using by
2015
Currently using, butw ill need upgrade/
change to meetneeds in 2015
Currently using andfully meets our
needs now and in2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 147
155 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Software Usage:Barcode Scanning
5%
21%
34%
22%17%
0%6%
42%39%
13%
2%
10%
29% 26%
33%
0% 0%
13%
38%
50%
0% 0%
20%
40% 40%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Not familiar w ith thissof tw are application
No plans to use thissof tw are application
Not currently using -w ill start using by
2015
Currently using, butw ill need upgrade/
change to meetneeds in 2015
Currently using andfully meets our
needs now and in2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 149
156 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Software Usage:RFID event capture / EPCIS
21%
47%
18%
5%9%
16%19%
52%
13%
0%
14%
36%31%
7%12%
25%
38%
13% 13% 13%
0%
40%
30%
20%
10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Not familiar w ith thissof tw are application
No plans to use thissof tw are application
Not currently using -w ill start using by
2015
Currently using, butw ill need upgrade/
change to meetneeds in 2015
Currently using andfully meets our
needs now and in2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 148
157 © Copyright IBM Corporation 2006
IBM Global Business Services
© 2011 IBM Corporation
Facing the Forces of Change Segmentation by Self-Reported Total SalesSegmentation by Self-Reported Total Sales
$500 millionand above
$250 millionto < $500
million
$50 millionto < $250
million
$20 millionto < $50million
Less than$20 million
Software Usage:Activity-Based Costing (A-BC)
16%
33%28%
16%
7%10%
32% 32%
19%
6%0%
37%
23% 21% 19%
0%
13%
38% 38%
13%
0%
30%
20%
30%
20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Not familiar w ith thissof tw are application
No plans to use thissof tw are application
Not currently using -w ill start using by
2015
Currently using, butw ill need upgrade/
change to meet needsin 2015
Currently using andfully meets our needs
now and in 2015
Col
umn
%
Less than $20 million $20 milllion to < $50 million $50 million to < $250 million
$250 million to < $500 million $500 million to over $1 billion
Sample Size = 149