1. E-Commerce - Crossing the Borders at the Click of a Mouse. Vincent Ler General Manager, General Business IBM Malaysia Sdn. Bhd. June 8, 2011

2. © 2011 IBM Corporation E-Commerce Crossing the Borders at the Click of the Mouse by Vincent Ler, General Manager, IBM Malaysia Sdn Bhd 2 Agenda  Business to Consumer (B2C) –Internet Users – Data –State of E-Commerce in Asia –Success Stories  Business to Business (B2B) –Key Drivers –Next-generation B2B E Commerce Strategy –Steps to Implement Next Generation B2B

3. © 2011 IBM Corporation E-Commerce Crossing the Borders at the Click of the Mouse by Vincent Ler, General Manager, IBM Malaysia Sdn Bhd 3 Internet Penetration

4. © 2011 IBM Corporation E-Commerce Crossing the Borders at the Click of the Mouse by Vincent Ler, General Manager, IBM Malaysia Sdn Bhd 4 Internet Users

5. © 2011 IBM Corporation E-Commerce Crossing the Borders at the Click of the Mouse by Vincent Ler, General Manager, IBM Malaysia Sdn Bhd 5 Internet Users – Distribution by World Region

6. © 2011 IBM Corporation E-Commerce Crossing the Borders at the Click of the Mouse by Vincent Ler, General Manager, IBM Malaysia Sdn Bhd 6 Online Purchases in next 6 months  27,000 internet user study poll in Asia Pacific, Europe, Middle East, NA and LA – what are users intending to buy, which sites, impact on social media and decision making  Top 5 items – books, clothing/accessories/shoes, airline ticket/reservations/electronic equipment tours/Hotel Reservations.  Intent to purchase airline tickets, book tours and hotel reservations show signs of economic improvement.  Compared to 2009, airline tickets purchased online and hotel arrangements increased by 7% and 9% respectively.

7. © 2011 IBM Corporation E-Commerce Crossing the Borders at the Click of the Mouse by Vincent Ler, General Manager, IBM Malaysia Sdn Bhd 7 Online shops have greatest appeal  AP with lowest that has never shopped online  > 38% shop online at multiple sites and through catalogues  31% shop only at online sites  19% shop online at brick & mortar stores

8. © 2011 IBM Corporation E-Commerce Crossing the Borders at the Click of the Mouse by Vincent Ler, General Manager, IBM Malaysia Sdn Bhd 8 Shopping Spending (of Total Monthly Spending)

9. © 2011 IBM Corporation E-Commerce Crossing the Borders at the Click of the Mouse by Vincent Ler, General Manager, IBM Malaysia Sdn Bhd  Deliver an experience that is B2C like : Rich and customer centric  Improve operation efficiency  Innovate business model to open new markets  Increase sales through marketing and merchandising  Building loyalty and community around the brand 9 Key Drivers for B2B

10. © 2011 IBM Corporation E-Commerce Crossing the Borders at the Click of the Mouse by Vincent Ler, General Manager, IBM Malaysia Sdn Bhd 10 Next Generation B2B Commerce

11. © 2011 IBM Corporation E-Commerce Crossing the Borders at the Click of the Mouse by Vincent Ler, General Manager, IBM Malaysia Sdn Bhd B2B 2.0 strategic elements and benefits 11

12. © 2011 IBM Corporation E-Commerce Crossing the Borders at the Click of the Mouse by Vincent Ler, General Manager, IBM Malaysia Sdn Bhd Step to Next Generation B2B - Commerce 12

13. © 2011 IBM Corporation E-Commerce Crossing the Borders at the Click of the Mouse by Vincent Ler, General Manager, IBM Malaysia Sdn Bhd 13

14. © 2011 IBM Corporation E-Commerce Crossing the Borders at the Click of the Mouse by Vincent Ler, General Manager, IBM Malaysia Sdn Bhd 14