© 2011 IBM Corporation

1. Social Selling with IBM and SugarCRM © 2011 IBM Corporation

2. Agenda Challenges in B2B Selling Social Selling Overview Why IBM and SugarCRM? Real Results How to Get Started © 2011 IBM Corporation

3. IDC 2011 Sales Barometer Survey Top Priorities and Challenges for Sales Executives Strategic Priorities • Sales Productivity • Customer acquisition • Customer retention Challenges • Increased complexity • Smarter customers • Intense competition • Reduce costs, especially travel © 2011 IBM Corporation

4. Sales Teams have Challenges too Spend too much time doing reports and not enough time selling to customers Forced to use tools that don't help them sell Wasting time on leads that don't pan out Takes too long to prepare for customer meetings Difficulty finding relevant and current product information Need to understand portfolio with little training Changing roles weaken relationships © 2011 IBM Corporation

5. Why ? Why do we have these challenges when companies spent over $10B on Sales Force Automation software in the last two years? Answer: Sales Force Automation systems are focused on managing the process and data instead of helping sellers sell © 2011 IBM Corporation

6. Social Selling Overview

7. Transform from Sales Force Automation to Social Selling Focus on selling Focus on management © 2011 IBM Corporation

8. What is Social Selling? Discover Understand your customers better than the competition Engage Apply expertise from across the organization Reach Spend more time with customers Act Focus on opportunities that create the most profit © 2011 IBM Corporation

9. Discover - Understand your customers better than the competition Know what customers are talking about and what they like and don't like through sentiment analysis of social data © 2011 IBM Corporation

10. Engage- Apply expertise from across the organization Easy access to experts so you get customer questions answered © 2011 IBM Corporation

11. Engage - Apply expertise from across the organization Leverage recommended communities and sales content © 2011 IBM Corporation

12. Engage - Apply expertise from across the organization Re-use best practices from other teams © 2011 IBM Corporation

13. Act - Focus on accounts and opportunities that create the most profit Use predictive analytic models to focus on the right deals and recommend the best products and pricing © 2011 IBM Corporation

14. Reach - Spend more time with customers Access to experts, content and communities from Apple, Android, RIM and Nokia mobile devices © 2011 IBM Corporation

15. Reach - Spend more time with customers Collaborate with customers remotely with a rich set of social tools

16. Reach - Spend more time with customers Deliver an Exceptional Web Experience for Customers

17. A Team of Top Performers Delivers Value Value • Higher close rates • Lower churn of important accounts • Tighter customer relationships • Shorter sales cycle • More competitive wins © 2011 IBM Corporation

18. IBM and SugarCRM Social Selling Software Components Mobile SugarCRM Portal Email Inbox Access Social Collaboration • Business Card/Profile • Communities • Shared Files • Activity Stream • Emeetings • Projects • Instant Messaging Business Analytics • Dashboards • Reports • Forecasting • Data Warehouse SugarCRM • Contact Management • Account Management • Opportunity Management • Activity Management Capabilities Predictive Analytics • Propensity to Buy • Upsell/Cross sell • Forecast Outlook • Optimal Pricing Social Analytics • Expertise Location • Recommend Content • Sentiment analysis • Single Sign On • Data Connectors • External Social Data • Event Management • Service Management • Enterprise Search • Cloud Integration • Business Process Management Integration Cloud Hosted On Premises

19. Why IBM and SugarCRM?

20. © 2011 IBM Corporation What differentiates IBM Social Selling from other solutions? • Maximum Reach to Customers • Broadest Engagement with Experts • Deeper insight into what customers are thinking and doing • Optimized Action based on Experience and Data

21. © 2011 IBM Corporation Maximum Reach to Customers Richest set of social collaboration tools • Sales reps can interact with customers via communities, web meetings, instant messaging, surveys, shared files, discussion forums and projects activities • Rep choose what they need for that account - not limited to just sharing files Exceptional Customer Experience • Personalized web experiences that combine back-end applications, commerce solutions, social applications, and cloud-based services • Reduce costs by supporting conversations with and between users through online communities and through online self-service • Adaptive experience based on preferences, behaviors, location, products owned, devices, and sentiments of each visitor

22. © 2011 IBM Corporation Sales Marketing Support SCM HCM ERP Adapters • Activity Streams • Business Card • REST Services • OpenSocial • Widgets • Events/alerts Social Content Social Analytics Social Profile Process Management Information Management Governance and Lifecycle Broadest Engagement with Experts across the Organization • Access and contribute social data from all LOB applications • Collaborate across the organization with the broadest set of social applications

23. © 2011 IBM Corporation Deeper insight into what customers are thinking and doing Powerful sentiment analysis • Collect and analyze snippets from multiple social data sources at the macro and micro/conversational level • Discover affinity between your product messaging and customer reactions • Pre-built lexicon library that can be configured to your industry and products Know what customers will do before they do • Discover evolving topic trends in customer concerns and issues • Apply predictive capabilities to social media data to create triggers of churn

24. © 2011 IBM Corporation Optimized Action based on Experience and Data Predictive Analytics gives everyone experience in what works • Decisions on what product or pricing to propose can be based on past success • Decision models can incorporate unique data for that customer and self adjust as market changes Better Forecasting through Business Intelligence • Track how the entire sales cycle is performing, from sales reps and territories to order fulfillment and pricing discounts • Identify process bottlenecks and capacity issues so you can improve timeliness and sales volume • Increase the understanding of customer buying patterns, needs, and levels of satisfaction

25. Leadership Market leading technology • IBM Connections – Marketshare leader in Enterprise Social software, IDC 2011 • IBM Sametime - Major Player in IDC’s 2011 MarketScape for Unified Communications Voice Infrastructure • IBM SmartCloud Engage - Named in leadership quadrant of Gartner's 2011 web conferencing report • IBM SPSS - 250,000 customers in 100 countries • IBM Cognos - Market share leader in Enterprise BI Platforms, Forrester Wave Q4 2010 • SugarCRM - Over 7,000 customers and more than a million users Market leading professional Services • GBS Strategy & Transformation – leader in Business Strategy, Customer Experience and Market Strategy with deep industry knowledge • GBS Application Innovation Services – leader in development and delivery of leading edge technology solutions • Global capability to support any type of strategy, delivery and post-deployment support

26. IBM GBS Services begin with our extensive research that identified the best practices for top performing organizations 12 critical success factors in sales effectiveness Top Performance Research • Assessment of sales force effectiveness best practices of top 100 performing companies over last 10 years • Precise definition of markets and market segments • Detailed definition of customer needs and buying criteria • Effective control of pricing and proactive pricing moves • Sophisticated understanding of value delivered Sales Strategy & Planning • Focused, disciplined opportunity pipeline management • Disciplined buyer selection and targeted marketing efforts • Effective account planning and global account management • Relationship marketing focus over transaction selling • Over 100 sales force effectiveness projects across range of industries over last four years Sales Management & Process Extensive Client Service Experience • Effective identification and sharing of sales methods and approaches • Individual compensation programs linked to desired sales behaviors • Clearly defined sales and sales management roles Sales Organization & Skills • Multi-year transformation program spanning over 50 internal sales improvement projects IBM Management Experience Technology & Tools • Appropriate sales productivity support tools, not latest technology © 2011 IBM Corporation

27. GBS’s integrated the 12 key findings into a robust Sales Effectiveness Framework which looks at sales from beginning to end Sales Strategy & Planning Partner / Channel Management Customer Value Proposition Channel Strategy Revenue / Coverage Planning Pricing / Profit Management Sales Management Sales Method Pipeline Management Revenue Forecasting Performance Measurement Sales Process Understand Customer Needs Develop Account Plan Establish Buying Vision Qualify Opportunity Define Solution Close Sale Manage Relationship Organizational Change Management Education Deployment & Delivery Sales Organization & Skills Structure & Roles Sales Leadership Talent Optimization Compensation & Culture Technology & Tools Customer Interaction Internal Collaboration External Collaboration Enterprise & Mobile Connectivity Personal Productivity 27

28. Real Results

29. ViroSafe/Panda Security • The Need: • Top-level support for existing and new resellers, improve email marketing to closely monitoring response triggers and streamline its sales process so that every lead was routed through its the system from a lead to a win. They also needed an open solution to ensure easy integration with other infrastructure. • The Solution: • A cloud based SugarCRM system with integrated social collaboration capabilities from IBM SmartCloud Engage • The Benefits: • Ability to conduct meetings online saves transportation costs – approximately $1,000/month • Complete control over all sales processes • Sales staff can work anytime, anywhere “The SugarCRM solution is in the premier league, whilst the previous system was in second division. I encourage everyone to try it, especially together with IBM SmartCloud Engage” Steinar L. Erksson, CEO Virosafe Norway/Panda Security

30. Imtech ICT The Need: Imtech ICT found that traditional hierarchical business structures were preventing knowledge-sharing and collaboration between its different business units – and realised that other companies probably faced the same problems. The Solution: Imtech ICT decided to develop C3, a new social software platform using IBM Connections that would make it easier for users to find and communicate with colleagues across the business. The solution was initially implemented internally within Imtech ICT, and subsequently offered to the company’s clients as a packaged solution. The Benefits: • Enables sales teams to quickly find colleagues who have the skills required for specific projects, helping to win new business from clients. • Provides collaboration tools such as blogs, wikis and forums to help users discuss issues and share knowledge. • Minimises training requirements by integrating with Microsoft Outlook and IBM Lotus Notes. “Successful collaboration no longer depends on building up a professional network over many years – C3 can provide a much more dynamic model that doesn’t rely on traditional hierarchies.” — Jan-Willem Sigtermans, Director of Human Resources at Imtech

31. XO Communications • The Need: • XO Communications needed to identify which of its small business customers were at the highest risk of switching to a competitor • The Solution: • Understanding critical data is key to identifying risk factors. XO Communications deployed an IBM SPSS predictive analytics solution that evaluates more than 500 variables for predicting customer defections within 90 days. That allowed the Customer Intelligence team at XO to build an accurate regression model keying on the 25 most relevant variables. Using this information, the client service managers can then proactively prioritize outbound calls to at-risk accounts. • The Benefits: • 60 percent improvement in revenue retention rates • Realizing millions of dollars in annualized revenue protection • Fewer client services managers are needed for the same level of risk coverage “By enabling our client services managers to prioritize their proactive outbound calls – basically, a ‘health check’ on the customer – we can cover more risk with our existing Client Services team . It’s been a very successful business model for us and has helped us organize our resources better.” Trent Taylor, Director – Customer Intelligence, XO Comm. © 2011 IBM Corporation

32. Real Connections • The Need: • RealConnections and THINNC, the company’s consulting group, serve large consulting clients and cloud-services customers. They were using Salesforce for CRM, but needed a solution that was easier to integrate with various cloud tools such as LotusLive, offered mobile capabilities, and had better pricing. • The Solution: • After evaluating several CRM they chose Sugar Corporate On-Demand with Sugar Mobile Plus, which enables access from a smartphone or tablet. And, for quick online meetings, RealConnections integrated Sugar with IBM LotusLive. Sugar manages all the company’s customer contacts and opportunities and provides additional insight about customers and prospects through its integration with Twitter and LinkedIn. • The Benefits: • Provides excellent visibility into customer interactions as well as control over sales and service processes. • Optimized the company’s campaign marketing • Mobile capabilities are time saver • Migrating the data was about one third of what they spent on Salesforce. Plus, now their data is better and they use more CRM functionality for significantly less money. “When we share documents like proposals and presentations, what we shared and who shared it becomes part of the customer opportunity in Sugar,” Vos says. “For the customer, the meeting is simply an open discussion, but on our end we know exactly who was involved, what was shared, and at what stage in the sales cycle.” —Eric Voss, Founder, RealConnections 

33. How To Get Started

34. Different starting points for Social Selling Engageexpertise across the organization • IBM Connections • IBM Sametime Maximize Reach with your customers • IBM SmartCloud Engage • IBM Customer Experience Suite Discoverinsights about your customers • IBM Cognos Consumer Insight Acton opportunities that create the most profit • IBM Cognos Business Intelligence • IBM® SPSS® Decision Management © 2011 IBM Corporation

35. Get Started Today with Social Selling • IBM Sales Transformation Business Value Assessment • Determine the ROI of transforming your sales team using your unique business data and requirements • Test drive SugarCRM with a free 7 day trial • Preloaded with test users and data sugarcrm.com/freetrial • Try IBM Connections and IBM Sametime on Greenhouse • SmartCloud Engage free trial • Link to register for free trial © 2011 IBM Corporation

36. Christopher Lamb, IBM Program Director, Social CRM chrislam@us.ibm.com, Twitter: chrisscottlamb © 2011 IBM Corporation

37. Additional Success Stories

38. SIG SAUER • The Need: • Organic business growth, the introduction of new product lines, and a rapidly expanding international presence had led SIG SAUER to a situation where its existing IT landscape was struggling to cope with the complex requirements of its diverse business markets • The Solution: • The solution analyzes data captured from all areas of the company to develop important insights into the manufacturer’s finance, procurement and sales processes, identifying bottlenecks which can then be addressed to reduce turnaround time for customers. • The Benefits: • Provided management and other users with near real-time analysis to improve decision making by accelerating the creation of reports by up to 97% • Provided a pre-built data warehouse – avoiding a costly in-house development project that could have taken up to two years • Created a single source of truth and a single reporting methodology, improving confidence in the results of the analysis “IBM Cognos Analytic Applications are an excellent option for businesses that need to transform their business intelligence capabilities rapidly, without sacrificing power and flexibility. Ronen Wolfsberger, CIO of SIG SAUER © 2011 IBM Corporation

39. VCC The Need: VCC is a U.S. construction company that works primarily on large-scale retail projects. In an effort to expand opportunities beyond its current niche, the company needed a highly configurable and mobile solution that could enable collaboration among remote project managers, giving them access to crucial data, analytics and expertise while in the field. The Solution: With the help of IBM Business Partner iEnterprises, VCC used Sugar’s iExtensions CRM to synchronize its existing IBM Lotus® Domino® platform and a homegrown system. Sugar’s iExtensions CRM for IBM Lotus Notes® and Domino software takes advantage of the latest IBM technologies to help promote better collaboration, even greater productivity improvements and a lower overall total cost of ownership for VCC. The Benefits: • Provided managers with the ability to collaboratively access expertise across the enterprise to make better business decisions and allow them to work five times faster while in the field • Enabled managers to use a smartphone to tap into a back-end customer relationship management (CRM) system programmed to deliver all relevant information, including project updates, customer and industry information, and potential leads, saving approximately 400 employee-hours per month • Allowed project managers the ability to access other project managers in real time, leveraging in-house expertise in real-world sales scenarios, contributing to an over 40 percent year-over-year increase in new business “The bottom line is that our sales within new vertical market segments increased by over 40 percent, during a time when we were fundamentally expanding our business.”— Wayne Alley, vice president, VCC