Building on belief

Ingram Micro’s
Digital Transformation
strategy

November 2021
 Building on belief

About Ingram Micro

Ingram Micro - Overview |A Fortune 100 company ,Second Largest distributor of IT Products & Services 3

 Ingram Micro, Inc, headquartered in Santa Ana, CA.is a global wholesale technology
distribution company with an annual revenue of $49.1bn and an IT spend of $933M.
 Ingram Micro provides information technology, supply-chain management, mobile
device lifecycle services and logistics solutions.  – For example, Apple is a big customer
for Ingram Micro and every iPhone is that is delivered to an end customer is
distributed by them.
 Ingram Micro distributes and markets a variety of technology and mobility products
from leading companies, such as Acer, Apple, Cisco, Citrix, Hewlett-Packard, IBM, Key Competitors
Lenovo, Microsoft, Samsung, Symantec, VMware and many others. 
 They are recognized as a leading third-party logistics provider; Ingram Micro supports
the reseller communities with an array of IT services that solution providers can use to
increase efficiencies and gain a competitive edge in the marketplace.

Revenue : USD $49.1 billion (2020) Net Income : USD $ 700 million (2020) Owner : Platinum Equity

No of Employees: 35,000 Assets : USD $215.1 Million

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Ingram Micro by the Numbers 4

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 Building on belief

Business Transformation,
priorities, goals
Strategy on a page 6

Redefine B2B Commerce by transforming Ingram

from legacy distribution business to a platform
business that does distribution

 Offer insights to VARs enabling an easy sell to consumers

 Build a Marketplace on Cloud that can be a platform which
operates on calibrated demand
 Automate the buying and selling cycle; become a demand
generator
 Leverage the existing disparate data to derive key insights
about customers thereby
 own the customer journey - pre, during and post
purchase
Other
distributors
VARs  drive towards curated and intelligent bundled offers
 Create a future that is built on Platform driven by
subscription model
Retailers  Build a conversational engine for high quality interactions
with customers
 Revenue driven by a robust distribution channel vs. product
driven revenue

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What does this mean?
From…
B2B Business
Ingram reaching out to VARs and
vendors. Today 50% of vendors
address 80% of the revenue
VARs calling Ingram Sales
Representatives. 68% of the
interaction is person to person.
28% is machine to machine. 5% is
ecommerce driven
Traditional e-commerce capabilities
viz., Search, quote, order, pricing,
checkout
Existing e-commerce platform and
Sales channel. Today 68% of sales is
done on ERP/tele sales (~$32bn)
Commodity business – selling
technology products that is done by
their competition Synnex too
To…
B2B2C Business
Vendors and resellers seek insights
on product consumption and
customer behavior
Convert all transactions through a
Self-service platform
Intelligence driven e-commerce
value chain
NextGen e-Commerce Platform
Loyalty solutions with VARs
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7
Through…
Marketplace platform on Cloud – Platform that will be a value creator between
Ingram, Vendors, VARs and Consumers
Recommendations based on customer’s LTV, segments, region and industry.
Automation of vendor catalogs.
Automated for demand capture and demand generation, clear know-how of the
supply and conversational AI for customer interaction (BOTs and Humanoids).
Enable VARs with the required analytics. Discretionary pricing based on
customer segments. Bundled solutions based on behavior – SKU on the fly +
price on the fly + bundle and sell on the fly
Establish Global Data  feeds Intelligent Engine  enables Frictionless
Experience. Establish a single pane of data layer on top of multiple ERPs (SAP
which is 15% of volume and Homegrown IMPulse), on cloud and perform
analytics
Build and enable omnichannel Customer Experience Platform (CEP). Design
Thinking led definition of future state customer journeys. Manage subscriptions
better than today; recurring revenue model.
Introduce Loyalty as a value driver through the platform
Enable sales of long tail of products digitally catering to every tier segment of
customers. Shift in Business Model where the focus is not only on the bigger
customers. Give necessary tools for VARs to work closer with the consumers
and eventually secure them
What does this mean? 8

From… To… Through…

Manually maintained product
catalog that exists at a country level
transacted by sales representatives
Focusing on Gross revenue of the
technology products
Hardware solutions
Recommend products driven by Rationalize to a vendor-level catalog and digitally managed
(say) voice recognition
Net revenue of the solution (a) Bundled solutions – today we don’t bundle h/w + s/w + subscriptions
bundles (b) recommendations and visibility
(c) omnichannel dynamic pricing and discounts
High impact Demand generation (d) subscription
combining h/w + s/w + (e) platform that can improve tracking, can be a MarketPlace for these
subscription. Improve operating transactions, curated to buying patterns
income from vendors (f) self-learning

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 Strategy for the rollout the ‘platform’ incrementally 9

Experience
CEP - associate
CEP - Customer
CEP - Customer

USA Germany New countries- set #2 New countries- set #3, 4….n

Microservices, APIs
On-Prem

Existing capability
(Lifecycle engine)
GCP Dashboards

Existing data Intelligent Engines (Priority) More Intelligent Engines (…..20+)

Product /
Customer Dynamic Vendor Subscription Supply
Disparate ERP PIM Master Recommendations Offer Renewals
Service Pricing Mgmt. Mgmt. Chain OMS
systems data Mgmt.

Customer Geo Unified Data Layer (Foundation) Unified Data Layer (Advanced)
Segmentation segmentation
Transactional AI/ML
Master Data
data workbench

1 2 3

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 Building on belief

Architecture and Technologies

Architecture roadmap: philosophy 11
Innovation @ Intersection: Data  Feeding Intelligent Engines  Enabling Frictionless Experience
Architecture
Present In Progress Future
Layer
• Monolith UI & Backend • Micro frontends • Cloud Native
Experience +
Engines • Disparate experiences • Unified (Omni-channel) • Unified experience: resellers,
experiences for resellers vendors, associates
• Monolith & P2P APIs • API-led • Intelligent & autonomous engines
• Disparate versions • Microservices • AI/ML
Engines • Mini APIs
• Orchestration
• Cached
• Monolith programs • Simplified programs in few cases • Enterprise data layer
• Disparate programs • Distributed caching
Backend
• Insights
• AI/ML

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Architecture roadmap: components 12
Transform from legacy monolith and disparate experiences  headless / modular commerce with omni-channel experience 
cloud native with infinite digital business models and monetization
Architecture
Present In Progress Future
Layer
• IMOnline • IMOnline • CEP
Experience + • IM360 (CRM) • IM360 • IM360
Engines • B2BAPI • B2BAPI • B2B API
• Mobile • Mobile
• Configurations • Invoice • Configurations • Invoice • Configurations • Invoice
• Quote • Pricing API • Quote • Pricing API • Quote • Pricing
API

• Cart • Payments, • Cart • Payments, • Cart • Payments,

Engines • Checkout, • Returns • Checkout, • Returns • Checkout, • Returns
• Order CRUD • Search • Order CRUD • Search • Order CRUD • Search
• Order • Renewals • Order • Renewals • Order • Renewals
Management Management Management
• SAP • SAP • AI & ML Factory
• IMPulse • IMPulse • Federated Data Marts / CDP / Elastic
• ODS API • ODS API • Enterprise DataWarehouse Events/ API
Backend • OLR • OLR • Enterprise Data Lakes
• Datamart / Elastic • Datamart / Elastic System of Records (ERP, Relational DB,
• EDW • EDW Transactional Systems)
Events/ API

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Few thoughts that TCS will bring in during deep dive 13

 The distribution business is mostly multi-year and contract-driven. These contracts may have slab discounts, lower price
protection, and many more geography-specific clauses which we may not even have heard of. Look to digitize those
contracts in such a way that when the smart engine recommends products and bundles it should include the contract
nuances as well, so the recommendation does not hurt the current business

 For Ingram to help VARs do a better job, Ingram should have a deeper understanding of VARs end customers and their
preferences, demands, and many more things to provide a better recommendation to VARs to serve their customers.
Capture VARs end customer details for the recommendation engine to provide better outcomes and conversion

 One-click Onboarding of Ingram customers (VARs). Onboarding is a cumbersome process and takes weeks to months
today and 90% of the interested entities give up in the onboarding process itself. More than 99% of businesses are SMB
and around 40% of those are MBE (Minority Business Entity) and WBE(Women-owned Business entity) and the
government in every country is promoting them to keep healthy competition. Having capabilities like one-click
onboarding would greatly help in bringing these customers onboard to the new platform very quickly which could
improve the revenue distribution (Today 50% of vendors address 80% of the revenue).

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 Building on belief

Opportunities with Ingram

List of Opportunities 15

Digital Platform Google PoC

• NDA signed • Sanjib has engaged Google for a POC to prove real time
• ~15 hours of Workshop session with Sanjib and Team over 2 extraction of Data from SAP and loading it on GCP Big
weeks Query platform.
• Discussion on the Vision, Solution approach, Architecture • Nidhi had met Sanjib to share her views on GCP
considerations, Challenges, What has been done and To be collaboration and commitment from our side.
done
• TCS presentation on Business and Technology reference
architecture POC details:
• Sanjib has planned to complete this program by end of  Revenue - $120K
2023 and Oct is the first month of the first Quarter  Peak team size – 6
 POC duration – 10 weeks
Program details:
 Potential Revenue - $20M-30M
 Peak team size – 150
 Program duration – 2.5 years
 Digital Platform POC

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