01 Pam Ibm Sw Day Joburg May 2011 Social Business Pc

© 2011 IBM Corporation IBM Confidential

Get Social. Do Business.

Pam Chandor | Global DirectorSocial Business & Web ExperienceIBM Software Group May 26, 2011

Powering a Market Leading Business Powering a Market Leading Business with Social Collaborationwith Social Collaboration


Why Social Business? Tenets of a Social Business Examples of Business Successes Helping You Get There

Agenda


The world is changing, and becoming more…

InstrumentedSmartphone shipments will outpace PCs by 2012

InterconnectedSocial networking accounts for 22% of all online time

IntelligentThe social data analytics opportunity will grow to 1 Zettabyte by 2011


A Social Media Revolution


74% integrating Web 2.0 with customer interaction75% integrating Web 2.0 into employee day-to-day activities 71% integrating Web 2.0 with partner/supplier interaction

Of nearly 1700 executives surveyed by McKinsey

The world is changing

?PolicyIntegrationAdoption


Customers:are leading the conversations that define brands

Competitors:are crowd-sourcing ideas to bring new solutions to market

Employees:are using social media in all facets of their lives, including work

An organization’s business network is a system of people that is fundamentally changing from the ground up...


Help clients turn data into information and information into insight that drives smarter business decisions

Clients can use social software to get closer to their customers, but must also transform internally, to social businesses

Need to acknowledge that complexity comes from interconnected systems – a system of systems

Collaboration Analytics Systems Thinking

...demanding a new approach


On a smarter planet, people are transforming the way they interact... and this transformation is impacting the way business is being done

95% of standout organizations will focus more on “getting closer to the customer” over the next 5 years.

– IBM CEO Study 2010

Standout organizations are

57% more likely to allow their people to use social and collaborative tools.

– IBM CHRO Study 2010

Why Social Business matters...

Social Business


A Social Business embraces networks of people to create business value

Engaged Transparent

NimbleAt its core,a Social Business is:


EngagedConnecting people – whether customers, partners or employees – as networks to drive innovation


TransparentRemoving unnecessary boundaries inside and outside the organization to allow your people and culture to reflect your brand and your values


NimbleLeveraging these networks to speed up business, gain real-time insight and make quicker and better decisions


A broad study of 3,249 executives

“…the fully networked enterprise can achieve…

the highest levels of market share gains increased self-reported profitability and distributed decision making and work.”

McKinsey QuarterlyDecember 2010The Rise of a Network Enterprise


Customer Experience

Product and Service Development

Marketing, Sales, Customer Service

Deepen relationships

with customers

Generate new ideas faster

Enable a more effective workforce

Operations, Human Resources

Traditional Business

Social Business

'Push' marketing via traditional channels

Control over brand image and brand communication

Invest in R&D Generate new ideas

internally Test ideas in market

Speed time to market and gain Speed time to market and gain market sharemarket share with break-through ideas and products

Email and phone based communication

Knowledge kept in silos

Save moneySave money by reaching out to professional networks to respond faster to business decisions and opportunities

Drives advocacy and more salesDrives advocacy and more sales through trusted relationships

Entry Points


ExceptionalExceptional

ExperienceExperience



Social Business EXPERIENCESEXPERIENCES

Deepen client relationships

Optimize your workforce

Available on premises or in the cloud.


Examples of Business Success


$99.9B revenue; $14.8B income

400,000 full time regular employees; 100,000 contractors; 100,000 partners

5,970+ executives

39,700+ managers

Operations in 170 countries, divided into 5 operating teams and/or markets:

North America, Japan, North East Europe, South West Europe, Growth Markets

Key business segments:

Global Technology Services

Global Business Services

Systems and Technology Group

Software Group

A highly diverse workforce:

50% workforce has less than 5 years of service

62% workforce is in our services business

50% of employees work remotely – not from a traditional IBM office

71% of our employee population is outside USA

15% of population comes from acquisitions & outsourcing deals

IBM is the World’s largest Information Technology CompanyIBM is the World’s largest Information Technology Company

IBM has the challenge of increasing productivity, collaboration and innovation of its 400,000 employees worldwide


IBM – A Social BusinessIBM – A Social Business

Suggested Reading: IDC Whitepaper - "Becoming a Social Business: The IBM Story"; January 2011http://aix.software.ibm.com/ftp/demos/226706-IDC-Whitepaper-Becoming-a-Social-Business-IBM-Story.pdf

Inside IBM• 18,000 blogs; 86,655 bloggers; ROE of 10%1

• 3.5 million profile searches per week; ROE of 455%2

• 240,000 files; 5.4 million downloads; ROE of 23%3

• 285,000 wiki pages; 15.2 million views; ROE of 53%4

• 1.1 million bookmarks; 3.1 million tags• 12 million instant messages per day• 150,000 web meetings; 1 million participants• 20,000 public communities; 345,000 members

Measurable Value• Search satisfaction has increased by 50% with a productivity driven savings

of $4.5M per year• $700K savings per month in reduced travel• Reductions in voice mail, email server costs

Outside IBM• 8 million registered users; 4.5 million unique monthly visitors• 2,500 public communities; 45,000 members• 1,100 blogs; 25,000 comments; ROE of 26%1

Measurable Value• $100 million in reduced support center costs• Reduce time for product documentation updates using wikis

1) ROE Blogs = (Number of Comments + Number of Recommendations) / Number of Blogs2) ROE Profiles (Yearly) = Number of searches / Number of profiles

3) ROE Files = Number of downloads / Number of uploads4) ROE Wikis = Number of page views / number of pages


Helping you get there...

Business need. We'll look at the results that your businesses need and work backwards to create systems that deliver those results.

Social Business Framework. A practical roadmap to becoming a social business...everything from cultural transformation to governance to technology.

Catalyze our Community. Business partner and developer tools for open, transparent and secure applications

Increase the depth our our core technologies. World-class predictive analytics Enterprise grade software in terms of compliance, security, governance and scale Innovation in mobility Unified Communications and the flexibility of Cloud and hybrid deployment


Driving value from Social Business

To get the benefits of social business, you need: Secure, scalable technology Business outcomes that matter Responsible management practices


Get Social. Do Business.

Pam Chandor | Global DirectorSocial Business & Web ExperienceIBM Software Group May 26, 2011

Powering a Market Leading Business Powering a Market Leading Business with Social Collaborationwith Social Collaboration


Why Social Business? Tenets of a Social Business Examples of Business Successes Helping You Get There

Agenda

3


The world is changing, and becoming more…

InstrumentedSmartphone shipments will outpace PCs by 2012

InterconnectedSocial networking accounts for 22% of all online time

IntelligentThe social data analytics opportunity will grow to 1 Zettabyte by 2011

The meteoric rise of social technology, which now accounts for 22 percent of people's time spent online, has connected nearly every individual on earth.


A Social Media Revolution

Today, more than 2 billion people use the internet. By the end of this year, Gen Y will outnumber Baby Boomers….and 96% of them have joined a social network.

The second largest search engine in the world is YouTube25% of search results for the World’s Top 20 largest brands are links to user-generated content. And this adoption has happened at an incredible pace.

Consider this: to reach 50 million users, it took radio 38 years...it took television 13....it took the internet only 4. Meanwhile, Facebook added 100 million users in less than 9 months…iPhone applications hit 1 billion downloads in 9 months.

It's clear we are now in the midst of a revolution. People are using these connections as a primary means of communication, in many cases, replacing other more traditional interactions. And companies are getting in on the act, too. 80% of companies are using LinkedIn as a primary tool to find employees.


74% integrating Web 2.0 with customer interaction75% integrating Web 2.0 into employee day-to-day activities 71% integrating Web 2.0 with partner/supplier interaction

Of nearly 1700 executives surveyed by McKinsey

The world is changing

?PolicyIntegrationAdoption


Customers:are leading the conversations that define brands

Competitors:are crowd-sourcing ideas to bring new solutions to market

Employees:are using social media in all facets of their lives, including work

An organization’s business network is a system of people that is fundamentally changing from the ground up...

78% of consumers trust peer recommendations, but only 14% trust advertisements.


On a smarter planet, people are transforming the way they interact... and this transformation is impacting the way business is being done

95% of standout organizations will focus more on “getting closer to the customer” over the next 5 years.

– IBM CEO Study 2010

Standout organizations are

57% more likely to allow their people to use social and collaborative tools.

– IBM CHRO Study 2010

Why Social Business matters...

Social Business


A Social Business embraces networks of people to create business value

Engaged Transparent

NimbleAt its core,a Social Business is:


EngagedConnecting people – whether customers, partners or employees – as networks to drive innovation


TransparentRemoving unnecessary boundaries inside and outside the organization to allow your people and culture to reflect your brand and your values


NimbleLeveraging these networks to speed up business, gain real-time insight and make quicker and better decisions


A broad study of 3,249 executives

“…the fully networked enterprise can achieve…

the highest levels of market share gains increased self-reported profitability and distributed decision making and work.”

McKinsey QuarterlyDecember 2010The Rise of a Network Enterprise


Customer Experience

Product and Service Development

Marketing, Sales, Customer Service

Deepen relationships

with customers

Generate new ideas faster

Enable a more effective workforce

Operations, Human Resources

Traditional Business

Social Business

'Push' marketing via traditional channels

Control over brand image and brand communication

Invest in R&D Generate new ideas

internally Test ideas in market

Speed time to market and gain Speed time to market and gain market sharemarket share with break-through ideas and products

Email and phone based communication

Knowledge kept in silos

Save moneySave money by reaching out to professional networks to respond faster to business decisions and opportunities

Drives advocacy and more salesDrives advocacy and more sales through trusted relationships

Entry Points






Social Business EXPERIENCESEXPERIENCES

Deepen client relationships

Optimize your workforce

Available on premises or in the cloud.


Examples of Business Success

Here are some of our customers already leading their organizations toward greater success, industry leaders like:

BASF - where their employees link socially to form expert networks that find answers for customers.

CSC, which allows teams to connect in real time

KBC - where they use social networks to overcome cultural differences as they grow in new markets

AT&T -- where product complexity is minimized for customers because employees can find someone who knows the answers, in the right language in near real time.

The Australian Football League - where they are taking an accelerated path to enhanced decision support

Blue Cross/Blue Shield of Massachusetts where they are working to create a better, more transparent Health Care system

- And the Royal Bank of Canada where they are gaining customer loyalty by providing individualized, web-based customer experiences.


$99.9B revenue; $14.8B income

400,000 full time regular employees; 100,000 contractors; 100,000 partners

5,970+ executives

39,700+ managers

Operations in 170 countries, divided into 5 operating teams and/or markets:

North America, Japan, North East Europe, South West Europe, Growth Markets

Key business segments:

Global Technology Services

Global Business Services

Systems and Technology Group

Software Group

A highly diverse workforce:

50% workforce has less than 5 years of service

62% workforce is in our services business

50% of employees work remotely – not from a traditional IBM office

71% of our employee population is outside USA

15% of population comes from acquisitions & outsourcing deals

IBM is the World’s largest Information Technology CompanyIBM is the World’s largest Information Technology Company

IBM has the challenge of increasing productivity, collaboration and innovation of its 400,000 employees worldwide


IBM – A Social BusinessIBM – A Social Business

Suggested Reading: IDC Whitepaper - "Becoming a Social Business: The IBM Story"; January 2011http://aix.software.ibm.com/ftp/demos/226706-IDC-Whitepaper-Becoming-a-Social-Business-IBM-Story.pdf

Inside IBM• 18,000 blogs; 86,655 bloggers; ROE of 10%1

• 3.5 million profile searches per week; ROE of 455%2

• 240,000 files; 5.4 million downloads; ROE of 23%3

• 285,000 wiki pages; 15.2 million views; ROE of 53%4

• 1.1 million bookmarks; 3.1 million tags• 12 million instant messages per day• 150,000 web meetings; 1 million participants• 20,000 public communities; 345,000 members

Measurable Value• Search satisfaction has increased by 50% with a productivity driven savings

of $4.5M per year• $700K savings per month in reduced travel• Reductions in voice mail, email server costs

Outside IBM• 8 million registered users; 4.5 million unique monthly visitors• 2,500 public communities; 45,000 members• 1,100 blogs; 25,000 comments; ROE of 26%1

Measurable Value• $100 million in reduced support center costs• Reduce time for product documentation updates using wikis

1) ROE Blogs = (Number of Comments + Number of Recommendations) / Number of Blogs2) ROE Profiles (Yearly) = Number of searches / Number of profiles

3) ROE Files = Number of downloads / Number of uploads4) ROE Wikis = Number of page views / number of pages

Metrics and information consolidated in February 2011. IBM has 3 separate social deployments (w3, ibm.com, and developerWorks)


Helping you get there...

Business need. We'll look at the results that your businesses need and work backwards to create systems that deliver those results.

Social Business Framework. A practical roadmap to becoming a social business...everything from cultural transformation to governance to technology.

Catalyze our Community. Business partner and developer tools for open, transparent and secure applications

Increase the depth our our core technologies. World-class predictive analytics Enterprise grade software in terms of compliance, security, governance and scale Innovation in mobility Unified Communications and the flexibility of Cloud and hybrid deployment


Driving value from Social Business

To get the benefits of social business, you need: Secure, scalable technology Business outcomes that matter Responsible management practices

01 Pam Ibm Sw Day Joburg May 2011 Social Business Pc

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