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Kemofarmacija d.d. WebSphere Commerce and IBM i

March 19, 2013

Today’s customer story comes straight from one of the customer references I’ve discussed in the past. It involves a customer you might not have heard about, but like thousands and thousands of midsized businesses around the world, they depend on IBM i, Power Systems and their solution to succeed in their market. And succeed they have. Their story also includes another IBM player – WebSphere Commerce, which helped the client realize significant growth in their online sales, and resulted in marketshare leadership.

Kemofarmacija d.d. is a leading wholesaler of medical and healthcare products and devices in Slovenia. With a range of more than 16,000 products, including medicine, medical devices and supplies, nutritional and cosmetic products and chemicals, Kemofarmacija recognized that it was not fully exploiting the potential of its Internet sales channel.

Zoran Lemut, CIO of Kemofarmacija d.d., explains: “Market needs had evolved, but our website had not changed with them. It wasn’t easy enough for customers to navigate our website, and we were not maximizing opportunities for cross-selling or more targeted online marketing.”

Kemofarmacija realized that it could drive more profitable sales by creating tailored website advertisements and promotions, offering customers the products they wanted at the right time. The company first needed to gain greater insight into its online customer base, so that it could enhance its website to better meet customer needs.

Kemofarmacija partnered with IBM Premier Business Partner MZR d.o.o. to design and build a custom e-commerce solution, Nova Elona, which is based on the IBM WebSphere Commerce Enterprise platform. The Nova Elona solution integrates IBM WebSphere Commerce Enterprise software with the company’s existing content management and ERP systems, offering advanced functionalities such as special offers, management of sales activities and customer segmentation.

Nova Elona is hosted on an IBM Power 720 Express server, with the IBM i operating system providing the exceptional levels of security and business resiliency that Kemofarmacija needs to guarantee consistently high service levels for its mission-critical e-commerce system.

“We are a long-term user of the Power Systems platform, and have always been impressed by the system’s stability and performance,” says Lemut. “The IBM Power 720 Express gives us all the performance we need in a compact, cost-effective and highly reliable server. There is also a clear upgrade path, so we can be sure that the solution will grow in line with our requirements. When you combine all of this with IBM’s continued investment in the platform, it gives us great confidence for the future.”

By choosing to run IBM WebSphere Commerce Enterprise on the IBM Power 720 Express, Kemofarmacija can take full advantage of its existing investment in and knowledge of the Power Systems platform. The company is also maximizing the potential for creating even greater business efficiency by leveraging a single Power Systems server to run the new solution alongside its other core business applications.

“With WebSphere running on the robust and powerful IBM Power 720 server, we have successfully maximized the revenue generating potential of our Web presence.”

—Zoran Lemut, CIO, Kemofarmacija d.d.

IBM WebSphere Commerce enables Kemofarmacija’s marketing team to deliver highly personalized marketing campaigns and advertisements via the Nova Elona solution. With the WebSphere software, users can fine-tune online shopping flows and electronic marketing messages, without intervention from IT. The solution provides information on customer behavior and the distribution of sales over different customer segments and sales channels—online, telephone orders and direct sales. It also provides powerful analytical tools for measuring the effectiveness of each marketing initiative.

“We are now able to offer online promotions and display ads that accurately reflect the products that customers are most likely to be interested in purchasing,” notes Lemut. “As a result, we have experienced a 30 percent increase in online sales order lines, so that more than 90 percent of our sales order lines now come through our web portal. We have also been able to improve cross-sales by presenting more targeted product recommendations, thereby encouraging customers to buy more during every visit.”

With IBM WebSphere Commerce boosting online sales, Kemofarmacija estimates that it has captured 42 percent of the market, giving it the largest market share in Slovenia.

Zoran Lemut concludes, “With WebSphere running on the robust and powerful IBM Power 720 server, we have successfully maximized the revenue-generating potential of our Web presence.”

I want to thank the team who put this reference together. They did a great job identifying the value brought to the customer. I had to edit it down for space, but the story is clear. Whether your company is using solutions from IBM, alongside your existing in-house and ISV workloads, like Kemofarmacia, or whether you use one of the thousands of industry-specific solutions in the IBM i marketplace, you also benefit from the reliability and integrated value of running IBM i on Power Systems. I hope this customer example helps you see new possibilities for the platform in your business.






Posted March 19, 2013| Permalink