How Whirlpool drives Customer Experience with the IBM Cloud

Learn the story of Whirlpool's B2B Cloud Services and the tremendous success it brought to customer service and satisfaction.

1. Superior Consumer Service: How Whirlpool Corporation Uses the Cloud to Break Away From the Competition Harold Hatfield Whirlpool Corporation Lori Brofford IBM

2. Agenda History of EDI IBM B2B Cloud Services Harold Hatfield, Whirlpool Corporation Q&A 1

3. History of EDI 2

4. How did this all start? Original catalyst to create common electronic data formats arose from the Allied efforts to supply West Berlin during the war Provisions for 2 million residents for 18 month duration Daily deliveries at peak 1,400 flights per day 13,000 tons of provisions per day 1960’s – EDI emerges Provide a digital messaging infrastructure to replace all this paper 3

5. Did you know? 1975 – Release worlds first EDI network (VAN) First to provide industry specific EDI standards (ORDERNET, EAGLE) and governing standards body 1979 – First Public, Cross Industry US Standard (ANSI X.12) 1984 – Pioneered first VAN to VAN connection (Interconnect) 1987 – First Public, Cross Industry International Standard (EDIFACT) 1998 – First fully managed EDI service provider, XML 1.0 Standard, SOAP 2006 – XML Version 1.1 2008 - Significant adoption of XML 2012 – Real time integration (order inquiries, inventory visibility) 4

6. What’s coming? 2015 – Instant gratification Consumers have more power than ever Consumer expectations bleed over to daily work Business must transform to meet these new consumer expectations 5

7. IBM Sterling B2B Cloud Services 6

8. Modernize to the Cloud Document Process Management Integration Services Transformation Services Process Enrichment Services Synchronous B2B Process Services Your Company Flexible small partner enablement solutions Web Forms Fax Conversion e-Invoicing Validate signed invoices Pre-connected Trading Partners EDI/Non EDI Global Connectivity Community Services Process Services Integration Services Data Synchronization Supply Chain Visibility e-Invoicing Supplier Portal / Web Forms Community Development Services Fax Conversion Services Trading Partner Help Desk Business Continuity Security Services Customer Support SLAs EDI and Content Routing Interconnects File Transfer Service China B2B Cloud Browser Access Sterling B2B Services Synchronous B2B Process Service 7

9. Visionary Leader - Gartner Magic Quadrant Best Vision in the Market Lower Execution Based on Proof of Geographic Expansion Sales

10. New Trends Demand for real time, synchronous processing is increasing Synchronous Request – Reply patterns Traditional supply chain – PO , PO Response New Inquiries – Inventory Availability , Price Checks , Order Status Complexity exists within web service implementations Web service interfaces High availability – always on Expected turnaround times now in seconds 9

11. B2B Cloud Services Orchestration Service Transformation Service Web Service Platform Protocol Service Identity Management Service Flexible services for process enablement You focus on your web service interface We perform ‘interface transformation mapping’ Tailored to client specs Protocol Process Application Real Time Integration in the Cloud 10

12. Unique Approach Not just another protocol Flexible baseline services to accomplish process enablement Customers focus on their web service interface, we perform ‘interface transformation mapping’ Two offerings: IBM Sterling Process Enrichment Service IBM Sterling Synchronous B2B Process Service 11

13. WHIRLPOOL CORPORATION About Whirlpool Corporation 12

14. World’s #1 major appliance company $19 billion in revenue 69K employees Products sold in more than 170 countries 13

15. Leading Portfolio of Brands 14 Jeff – We need a new image

16. Business Approach Business Model Innovation Big Box Retail Customer Interaction Call Center Service Repair Customer Loyalty Experience / Beliefs Retailer Call Agent Service Repair Technician 15

17. Customer Experience Impacts Loyalty Situation Consumers owning appliance longer Mechanical failures happen Impact on failure Repair or Replace Decision Repair Contact Call Center and schedule appointment Being available for Service Repair call Service Repair arrives with parts based on Call Center Contact Question – show of hands … has anyone ever misdiagnosed a problem? Question - what happens when the part on the truck is not the right part? Impact on customer satisfaction? Building a better customer experience – Parts Market Place 16

18. Need for Parts Market Place (PMP) Business conditions Slow down in housing starts Consumers repairing rather than replacing Raw material prices increasing International Competition entering market Ongoing battle for consumer loyalty Low touch business model Reduce product exchange Post-purchase experience is vital to the Whirlpool strategy Define and implement a service business model - Breakthrough Services Model drives a demonstrably differentiated consumer experience major cross-functional initiatives to position for 2/80/5 2/80/5 - service within 2 days of a consumer’s contact, addressing the issue or repair during the first visit 80 percent of the time, or wrapping up the entire experience within 5 days total 17

19. Quick Survey Show of hands How many have had appliance repairs Resolved within 14 days Resolved within 10 days Resolved within 5 days Show of hands How many have had appliance repairs More than 2 service calls to repair Two service calls to repair Repaired on first call Parts Market Place Leveraged IBM WTX and Sterling B2B Services Partnered with IBM to build a hosted solution Cooperative effort across IBM, Whirlpool, Parts Distributors and Service Repair Launched in Fall 2010 – now over 80 Service Companies and 25 Part Distributors 18

20. Scenario: Appliance owner calls for service; Servicer loads parts on truck based on appliance owner’s diagnosis; Servicer arrives in home, diagnosis was improper; parts required are not on truck, fires up Parts Marketplace; locates and orders proper part; reschedules repair before leaving the consumer’s home; arrives as promised with right part and fixes condition within 5 days PMP - Synchronous B2B Process Service 19

21. Outcomes Improved Customer Experience - realizing 2/70/5 Improved Consumer Brand Loyalty Improved “part in hand” from 10 to 4 days Growing Service Base Competitive advantage connecting Servicers and Parts Distributors Visibility into Distributors real time inventory Added benefits Parts Distributors purchasing department more effectively managing inventory Direct to Servicer option available Early Warning for Engineering Improvement in Service reschedule accuracy/timeliness Analyze Servicing Companies Analyze Part Suppliers Use Analytics to understand top 20 parts most requested to drive business decisions Customer Service Agents leverage PMP to locate parts and Servicers for consumers 20

22. Questions welcomed 21

23. 22 Join Our Next Sessions: Tomorrow 8am in Lagoon L - Learn What the Future of Business Will Look Like with Analytics, Electronic Invoicing and Big Data 9:30am in this room - Analytics in the Cloud: Transform the Value Chain with Data-Driven Insights 11am in this room - Choosing Cloud: A Clients Perspective with Lenovo, Philips, CEVA Logistics, & Watts Water 2pm in this room - How Philips Uses the Cloud to Deliver on Global B2B Strategy Thursday 9am in Lagoon L = Learn How You Can Do Business in China in the Cloud Learn more about B2B Cloud Services

24. Thank You