IBM Puts Michelin's European Distributors in the Driver's Seat; New Web-based Ordering System is Powered by IBM eServer zSeries Mainframe

Business Wire, July 10, 2001

Business/Technology Editors

PARIS--(BUSINESS WIRE)--July 10, 2001

Michelin, the world's largest producer of tyres, and IBM announced today that Michelin has installed for all Europe a new Web-based system -- based on a Web-enabled IBM eServer zSeries mainframe -- that improves service to its network of 50,000 European distributors by allowing them to place orders for Michelin products directly over the Web any time of the day or night.

Prior to installing the new system, the order process was people intensive, and dealers were required to place their orders during normal business hours. The new IBM system, running IBM WebSphere Application Server 3.02, CICS transaction software and an IBM DB2 database, allows Michelin to react more quickly to emerging sales opportunities, save money and re-assign additional personnel to selling to new customer accounts.

"By moving our existing IBM mainframe to the Web, we were able to provide our network of dealers with all the benefits of Web-based ordering, while realising substantial savings when compared to the time and training costs of moving to a UNIX or NT based system," said Christophe Vystrecil, Michelin. "The new IBM system allows us to handle thousands of additional simultaneous transactions with the response time and security we need to be competitive."

"Every day, new customers discover the cost and performance advantages of consolidating their applications on the IBM zSeries mainframe," said Rich Lechner, vice president, IBM eServer zSeries. "In an environment where CIOs and IT managers are carefully evaluating their purchasing decisions, many are discovering that taking their mainframe to the Web has substantial business benefit."

The new system provides Michelin's dealers with the ability to search for specific Michelin products, verify quantities, availability, and delivery schedules. In addition, it enables them to communicate with the company via a "Contact Us" option, all independent of a telephone-based customer service representative.

The system is initially being deployed for use by Michelin's large European distributors in the United Kingdom, Germany and France and will be made available to the most of the company's tyre European network distributors. The full deployment is planned till 2004.

Michelin already implemented the next phase of the project developing new services, documentations, tyre selector to enhance their actual extranet towards a value added portal.

About Michelin

Michelin is world's largest producer of tyres, employing 130 000 people worldwide and operating 74 factories in 17 countries. Its 2000 worldwide revenue of 15,400 million of Euro s (approximately US $14.09 billion) represents 19,4 percent share of the world market. Everyday, Michelin produces more than 850,000 tyres, 61,000 inner tubes, 4 million kilometers of wire, 96,000 wheels, and 70,000 tourist maps and guides.

About IBM

IBM is the largest IT services organisation, both in the U.K. and the World. IBM, strives to lead in the creation, development and manufacture of the industry's most advanced information technologies, including computer systems, software, networking systems, storage devices and microelectronics. It translates these advanced technologies into value for its customers through its professional solutions and services businesses worldwide.

IBM is widely associated with the growth of information technology in the past seventy years. From the original mainframes which gave birth to business computing to the mid-range and personal systems computers of the 1980s, IBM has been a world leader in the development of computing, networking, and communications products and services. IBM UK has been trading in the United Kingdom since 1952 and has grown over the years to become one of the largest exporters of computing equipment in the nation.

IBM United Kingdom Limited is a wholly owned subsidiary of the IBM Corporation, which was founded in 1911. For more information about IBM's products and services, visit the IBM Web site at http://www.ibm.com.