®

IBM Software Group

© 2003 IBM Corporation

IBM middleware technologyrevs up the automotive industryAttract and retain more profitable customers

NOTE to IBM Business Partner:

Add Business Partner logo here

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Automotive industry in the on demand era1

2

3

Automotive industry challenges and dynamics

Middleware matters

Solution recommendations and customer experiences4

5 Next steps

Agenda

NOTE:Add Business Partner

logo here

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Changing role of suppliers

Increased responsibility and need for design and development collaboration and integration

Slow growth in auto sales propped by zero-percent financing

Shift toward fewer OEMs and fewer suppliers

Expectations of continuous improvement and cost cutting – the “squeeze model”

Strategic forces

“Squeeze model” 2004

New on demand business

“An on demand business is an enterprise

whose business processes — integrated

end-to-end across the company and with

key partners, suppliers and customers —

can respond with speed to any customer

demand, market opportunity or external

threat.”

— Sam Palmisano, October 2003

NOTE:Add Business Partner

value proposition

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Is your accounts payable not in synch with terms of procurement?

Would you like to be able to better understand customers and equip channels with customer history and insights?

Do these challenges sound familiar?

Are your costs of labor and overhead, and percentage of

scrap and rework too high?

Can you provide timely and accurate forecasting to reduce inventory costs, number of stock-outs and increase inventory turns?

Is regulatory compliance, such as reporting to NHTSA for consumer safety and product quality, difficult?

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IBM has solutions specifically for midsize automotive businesses at a price lower than the competition.

Security is critically important. IBM Express Middleware is the safer choice.

IBM middleware solutions are available from thousands of local IBM Business Partners.

IBM middleware leverages existing IT investments, no rip and replace.

Midsize automotive business solutions are here

Operational costs

Changing needs

Open standards

Reliability

On demand business needs on demand solutions

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Improve collaboration in design and production

Decrease production cost by improving communication across the organization and supply chain

Improve ability to understand customers and equip channels with customer history and insight to issuesthat affect safety regulations, etc.

Reduce time to market in response to changing business landscape

Optimize inventory levels and cost-effective inventory management

“The most frequently cited business issue driving IT investment is better utilization of data throughout the organization. From information on production planning and shop-floor scheduling to the increasingly robust set of data collected on customer demographics and order preferences, the need to collect, analyze, and share information that supports decision-making processes is an absolute priority.” — AMR Research

Top business priorities of automotive industry IT executives

What we’re hearing

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Your Title Here

“Add Business Partner Customer quote here.”

— Source

Note:Add Business Partner logo here

Add Business Partner local trends

Add facts about the Business Partner

# of local engagements

Quote from BP president?

Facts that qualify the BP as a vendor of choice

Example is next slide

AddLogo

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Increased investments resulting from customer insight

Cost-effective production processes becoming a competitive differentiator

Growth through new product development continues

Currents of change

“Improved decision making and the demands of a global marketplace drive application and IT investment. Infrastructure and application investments will be highly prioritized as a means to deliver information more efficiently throughout the organization.” — AMR Research

IT investments are changing the automotive landscape

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Challenge Solution

Better understand customersand equip channels with customer historyand insight.

Customer Service Portal

Production, Operations, and Logistics solution

Decrease production cost by improvingcommunication across organization andsupply chain

Improve collaboration in designand production

Product Life CycleManagement (PLM)

You have challenges. IBM and IBM Business Partners have solutions.

“IBM is speeding forward and turning up the channel heat on competitors in a wide range of markets. What it all means is that IBM competitors who stay put should be prepared to eat more dust.”

— Computer Reseller News

NOTE:You may merge content above with Business Partner

local automotive solutions. See next slide.

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IBM Business Partners applications and services

Brief solution summary here

Challenge Solution

Brief summary of customerpains here

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The automotive supplier segment is changing Fewer OEMs—resulting in fewer customers Auto supplier consolidation due to fewer customers and constant price pressure

Reliable, industry-specific software solutions that create effective real-time linkages with customers and suppliers

Increased profitability through reduced costs, improved efficiency, stronger customer relationships, and integrated processes

Express Portfolio

What midsize automotive firms want — at an affordable price

LocalBusiness Partners

A complete solution

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Why middleware mattersMidsize automotive businesses need IBM Express Middleware

Builds, manages and secures your IT environment

Standardizes key housekeeping functions so that your applications can focus on solving your business problem

Provides open standards so clients are not tied to a proprietary vendor and single operating system

Provides scalability as your organization grows

Serves as the glue that tightly links the elements of your business internally and externally

‘Inventory visibility and event management are up and coming focuses in automotive.”

-Jeff Ryan Tigris Consulting

Source: Supply Chain Management Review “A Clearer View of Automotive Visibility”NOTE:

Business Partner customer quote?

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Why IBM Express middleware?

Keep your options open. Protect your IT investments.“An enterprise that actively manages future risks should favor J2EE.”

Less risky than other vendors– Open IT environment ; no IT lock-in; more than 25 platforms

supported; allows customers to take full advantage of future innovations

Less costly– No rip and replace; lower prices

Helps companies become more responsive, resilient and focused

– Simplifies collaboration among employees, partners and customers

– Open standards facilitate communication across multiple IT environments worldwide

More secure

Deep industry expertise

NOTE:Business Partner customer quote?

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Improve customer relationships

Decrease production costs by managing, distributing and collaborating on design work, and by integrating factory information throughout the supply chain

Improve time to market while increasing product introduction success rates and product quality

Customer Service Portal

Production, Operations and Logistics

Product Life Cycle Management (PLM)

Better understand customers and provide channels with customer history and insights

Manage warrantee and service contracts

Provide service documentation via a customer portal

Predict failures and service needs

Enable enterprise automation across business

Streamline operations

• Improve time to market

• Increase success rate of product intro, quality

• Reduce costs and design time

Challenge Solution Key Benefits

You have challenges, we have solutions

NOTE:If you wish, modify content below with Business

Partner local automotive application solutions

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Better understand customers and provide channels with customer history and insights

Manage warrantee and service contracts

Provide service documentation via a customer portal

Predict failures and service needs

Manage warrantee and service contracts

IBM Express Customer Service Portal

IBM Components WebSphere Application Server - Express

WebSphere Portal Express

WebSphere Studio

Tivoli Access Manager for e-business

Rational Suite

DB2 UDB Express

DB2 Content Manager Express

DB2 Records Manager

DB2 Content Manager Entry Offering

DB2 CommonStore Entry Offering

How can you improve your customer relationships?

Customer Service Portal

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Provide better customer service. Company wanted a Web-based customer relationship management (CRM) solution that could be integrated with its existing systems.

Reduced call center costs by 50%

Quicker development time, as well as maintenance cost savings

Improved communication with customers via a single interface

Increased efficiency as a result of moving from a paper-based manual system to an automated Web-based one

IBM WebSphere Commerce Professional Edition Version 5 used for customer order and transaction management

Challenge

Solution

Value

Sime Darby Hong Kong Ltd.: Enhanced customer service

Note to IBM Business Partners: IBM SMB references follow each solution area. You can use these or substitute your own.

The best reference is the business down the street. If you choose to use your own, you can use this format. See “Backup” section for a blank template.

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Enables enterprise automation across accounting and financials, materials and capacity management, human resources, payroll and industry-specific functions for streamlined operations across business

IBM Express Production, Operations and Logistics solution

IBM Components WebSphere Application Server

WebSphere Everyplace Server

Tivoli Monitoring for Applications

Rational Suite

WebSphere Studio

On demand parts ordering and order tracking

How can you cut production costs and integrate factory information?

Production, Operations and Logistics

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HM’s Power Plant Division wanted to extend its enterprise resource planning (ERP) applications to suppliers and large international customers to streamline business processes and reduce costs.

66% savings in ERP development time

Significant reduction in the cost of Visual Basic client licenses

15% reduction in inventory costs

IBM WebSphere solutions to develop and host applications that link Web to the ERP system and allow online transaction processing

“We are committed to use … OS/400 running our in-house ERP, Web Application Server and HTTP environments.”

— Mr. S. Appan, CIO, Hindustan Motors Power Plant Division

Challenge

Solution

Value

Hindustan Motors: Extended global ERP system

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Improve time to market

Increase product introduction success rates and product quality

Reduce costs through reuse of parts, drawings and documents

Reduce engineering design time and accelerate document retrieval

Improve communication within the company and with suppliers

Improve time to market

IBM Components WebSphere Application Server

WebSphere Studio

DB2 Content Manager Express

DB2 Content Manager Entry Offering

DB2 CommonStore Entry Offering

Lotus Instant Messaging and Web Conferencing

Tivoli Access Manager for e-business

Rational Suite and WebSphere Studio

Product Life Cycle Management (PLM)

How can you improve product introduction success rates and product quality?

Product Life Cycle Management

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The existing product life cycle management (PLM) application could not readily integrate with its enterprise resource planning (ERP) and other manufacturing applications.

Hub-and-spoke architecture strategy featuring IBM WebSphere Business Integration Version 4.2

Improved productivity and collaboration

Ability to access and send information to its applications in real time

Suppliers can see information about requirements, changes, forecasts and shipments

“The amazing part about WebSphere is how well it enables us to tackle any problem or issue with the transference of data between our diametrically opposed environments.”

— Pat Erickson, CIO, Thomas Built Buses

Challenge

Solution

Value

Thomas Built Buses: Gains in productivity and collaboration

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Improve customer loyalty, revenue and profit

Decrease production costs by managing, distributing and collaborating on design work and by integrating factory information throughout the supply chain

Improve time to market, as well as increase product introduction success rates and product quality

Gain deeper understanding of customers.

Rapidly and cost effectively connect with large population of suppliers and partners.

Synchronize product design and engineering collaboration.

Improve the software design process.

Optimize business results by enhancing system information.

Comply with multiple industry regulatory requirements.

Benefits of IBM Express Middleware:

Express Middleware can modernize your infrastructure

NOTE:If you wish, merge content above with Business

Partner local automotive solutions

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Assess your on demand needs

Map out your journey

Calculate your ROI and business value

Get started, start anywhere — small or a total solution

Go to URL or email xxx for next steps

Take action today

The never before possible becomes possible

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© Copyright IBM Corporation 2004. All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software.References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way.IBM, the IBM logo, the e-business logo and other IBM products and services are trademarks or registered trademarks of the International Business Machines Corporation, in the United States, other countries or both. Java and all Java-based trademarks are trademarks of Sun Microsystems, Inc. in the United States, other countries or both.Microsoft, Windows, Windows NT and the Windows logo are trademarks of Microsoft Corporation in the United States, other countries or both.All other trademarks, company, products or service names may be trademarks, registered trademarks or service marks of others

Disclaimer: NOTICE – BUSINESS VALUE INFORMATION IS PROVIDED TO YOU 'AS IS' WITH THE UNDERSTANDING THAT THERE ARE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND EITHER EXPRESS OR IMPLIED. IBM DISCLAIMS ALL WARRANTIES INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. IBM DOES NOT WARRANT OR MAKE ANY REPRESENTATIONS REGARDING THE USE, VALIDITY, ACCURACY OR RELIABILITY OF THE BUSINESS BENEFITS SHOWN.. IN NO EVENT SHALL IBM BE LIABLE FOR ANY DAMAGES, INCLUDING THOSE ARISING AS A RESULT OF IBM'S NEGLIGENCE.WHETHER THOSE DAMAGES ARE DIRECT, CONSEQUENTIAL, INCIDENTAL, OR SPECIAL, FLOWING FROM YOUR USE OF OR INABILITY TO USE THE INFORMATION PROVIDED HEREWITH OR RESULTS EVEN IF IBM HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE ULTIMATE RESPONSIBILITY FOR ACHIEVING THE CALCULATED RESULTS REMAINS WITH YOU.

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Backup

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$1 billion annual investment in engineering $5 billion annual investment in technology

acquisition– Modeling– Process Integration– Software Development

More than 7,000 developers

10,000 customer sites rely on WebSphere MQ. 2,000 customers rely on WebSphere Business Integration. 2,000+ customers reply on WebSphere Portal since its introduction in 2000. WebSphere Commerce powers 6 of top 10 pharmaceuticals. IBM offers 48 industry-tailored business integration solutions that span 11 industries. IBM WebSphere customers include 91 of the top 100 global companies in 2003. 450K+ companies rely on IBM DB2 Information Management solutions.

“Express is proof that IBM is serious about the SMB market.”

— Wayne Scarano, SGA Business Systems

Nobody invests more

Experience really counts

IBM Express is affordably priced.

Why IBM? Experience counts for midsize automotive firms

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IBM Business Partner

Who and what skill sets matter from the customer’s point-of-view.

Business Partner experience, local background, etc…..

“Business Partner tagline or local customer quote.”

– Mr. Source,

Business Partner Staff

Experience really counts

IBM Express is affordably priced

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Business Partner application or service goes hereExpand on the Business Partner local automotive solutions or applications

XXXXXXXXXX

XXXXX

XXXXXXX

XXXXX

XXXXXXX

Business Partner application IBM and Business Partner components Placeholder

Placeholder

Placeholder

Business Partnerapplication

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2002 Share* 2001-02 Growth%

IBM 23.3% 17.5%

BEA Systems 17.3% 9.6%

Oracle Corp. 9.5% 8.0%

Tibco Inc. 4.9% -19.4%

webMethods 4.3% 6.3%

Sources: • IDC, “Application Deployment Platform Software Market, 2000-2002, with Leading Suppliers” June 2003 , Dennis Byron, Vice President, Business Process and Deployment Software Research • Gartner First Take "IBM Has Top Share in All Application Integration, Middleware Markets", J. Correia, Y. Natis, M. Pezzini, R. Schulte, 7 May 2003.

* Based on license revenue and license-related service fees.

IBM "continued its long time lead of this market,“ IDC, June 2003

Application Deployment Platform Software Market

Application ServersIntegration Broker Suites

PortalsMessage-Oriented Middleware

Application Platform Suites Composite MarketTransaction Processing Monitors

Total Market

21

N/A1211

2131211

1111111

2000 2001 2002Worldwide IBM Market Share Position Based on New License Revenue

“IBM Has Top Share in All Application Integration Middleware Markets” Gartner Dataquest, May 2003

2000 2001 200219990

100

200

300

Ap

plic

atio

n In

teg

rati

on

Lic

ense

Rev

enu

e

IBM

TibcoWebMethods

SeeBeyondMercatorVitria

2003** Estimate based on 1H03 actual growth rates

The gap widens

Source: Wintergreen Research

Leading industry analysts acknowledge IBM market share dominance

Why IBM?Market leadership

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1998 / 1999Java, XML and ebXML

Co-founder and lead architect for RosettaNet

Author of XML4J Chair OMG XML

Metadata Interch. Format

Co-author W3C Document Object Model

Founder XML.org Elected to Board

of Directors in OASIS

2000Web Services

and UDDI Co-author of

SOAP 1.1 and submission to W3C

Cofounder of UDDI.org and author of original UDDI specification

Co-author of WSDL

IBM contributes SOAP4J to Apache

2001Web Services

and Tools Led submission of

WSDL to the W3C Co-chaired W3

Web Services Workshop

Founder of Eclipse.org

Co-author of W3C XML Schema standard

Chair of Web Services Interactive Applications TC

2002Web Services and Security

Founder and chair, Web Services Interoperability Organization

Co-author of Web services bus process specification (BPEL, WS-TX, WS-TC)

Co-author for Web Services Security roadmap and specification

2003Web Services and Security

Submission of BPEL to OASIS Co-chair WSBPELTC in OASIS Submission of Common Base

Events to WSDM TC in OASIS Submission of WS-Manageability to

WSDM TC in OASIS Co-authored and published EPAL

specification to WC3 Co-chair WSDM TC in OASIS More than 1,000 developers

devoted to XML and more than 1,500 focused on Linux; over 200 software products running on Linux

Led workgroup responsible for finalization of SOAP 1.2

Why IBM? Industry standards leadership

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Why IBM? Award-winning software brands

IBM is the leader in business automation.

— Aberdeen, September 2002

IBM is the leader in portal software in 2002.

— Gartner, 2003

IBM has widened lead as the leading and most question-free vendor in commerce servers.

— Giga, August 2003

IBM is the leader in application integration.

— Gartner, October 2002

Technology leadership “Best in Enterprise Integration”

— Intelligent Enterprise Readers Choice award 2002

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Award-winning Business Partner Applications here

The more local the award the better

Any local civic clubs or organization?

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Why IBM? We’re committed to the midsize marketplace

IBM Gets Serious About ExpressJanuary 21, 2004

Happy Together: IBM, Linux and Small BusinessesMay 30, 2003

IBM escalates SMB war with MicrosoftFebruary 25, 2004

Software giants think small: IBM, Microsoft move into niche markets December 11, 2004

IBM Expects SMB to rev up IT spending in 2004January 2, 2004

SMB Partners Eyeing WebSphere ExpressJune 6, 2003

NOTE:Any local press headlines?

Articles about the BP?

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Add key benefit customer

Challenge Value

Blank customer reference template

Solutions

“….quote goes here...l.” – attribution goes here

(Name, title, company)

Add customer logo