IBM’s new middleware suite designed to boost multi-channel retailing
A new suite of middleware software from IBM supports multi-channel retailing by providing a central view of customer activity across channels and integrating connections across all channels to back-end fulfillment operations, IBM says. “With our middleware for multi-channel management, a retailer can recognize customers regardless of what channel they’ve shopped, and dynamically design promotions specifically based on customer activity,” says Pamela Klym, segment manager for the retail industry at IBM Software Group.
The middleware is also designed to support a common view of inventory status across all shopping channels, so that customers can be informed of the same inventory availability whether they’re shopping on the web, on web-based kiosks, in stores or through a call center, Klym says.
The middleware is packaged as IBM Middleware Solutions for Retail and comes in six individual sections: Multi-Channel Management, Retail Merchandising, Item Management, Inventory Management, Store Operations, and Advertising, Marketing and Promotions. Each module comes with an integration engine that supports data flow among the modules as well as with third-party applications, such as price optimization software from Profit Logic and merchandise management software from Retek Inc. Both ProfitLogic and Retek are development partners of IBM.
IBM designed its middleware software to blend web and private network technology, so that retailers have flexibility to use each type of networking where they choose. “The goal of this middleware is to use the Internet or a private network where appropriate,” Klym says, adding that retailers may want to keep sensitive financial applications running on a private network.
IBM Middleware Solutions for Retail is being piloted by a number of grocery retailers, who expect to improve cross-channel loyalty programs among other goals of improving the way they interact with customers in multiple channels, Klym says.
IBM says retailers will implement the middleware packages in stages. For example, Klym says, a retailer may start with middleware for item management, which provides synchronization of product data with suppliers, along with multi-channel management and store operations management to assure that each selling channel is using the same product data to support multi-channel product presentation and marketing strategies.
Depending on how much middleware a retailer initially deploys, prices for large-company enterprise versions start at about $200,000, Klym says. An Express version for small and mid-size business starts at about $30,000.
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