© 2014 IBM Corporation

BP403: Driving Business Opportunity with Patterns

Scott J Smith, WW Lead, Social Business Industry & Value, IBM

Alan Hamilton, Social Business Executive Consultant, IBM

Topics

Repeatable approach to ROI

Path to LOB: Patterns facilitate conversation in LOB’s language

“Deep dive” example

What’s new

Teaming to scale

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3

LOB is making SW decisions & increasingly requires integrated software solutions

“This is the biggest shift in the last 20 years. New buyers want solutions to

business problems, not just to buy products.”

Gartner

“The explosion of new industry solutions will dramatically shift who the IT

buyer is. IT vendors need to become more adept at building offerings for LOB

executives and at establishing messages for, and relationships with, these

increasingly influential IT buyers

IDC

Sources: IDC: The Implication of Shifting Technology Buying Centers on Your Business; IDC Predictions 2013: Competing on

the 3rd Platform

2013 2016

61%

80%

New technology investments influenced by line of business executives

LOB executives will take the lead decision-maker role in more than

half of these investments

Social: The ROI is enticing…

$900B – 1.3T/yr

from McKinsey1

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…except it’s hard to prove in my organization

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88%

can’t accurately measure

ROI

52%

ROI is biggest frustration

Summarizing the issueThank you TechCrunch

[Clients] want social technologies that become part of their work. Too often,

enterprise social networks act as a separate silo where people

interact for the sake of using a social media solution. That needs to

change.

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The 3 Ps: Foundation of Repeatable ROI

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people

People

work

Processes

Interact; separate silo

Patterns

Repeatable Patterns

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From general to specific ROI

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+15% revenue 1

+20% customer sat1

+20% innovations1

+20-25% productivity 2

+20% employee retention2

+30% access to experts1

↓ 50-83% M&A failure rate3

+30% access to experts1

↓ injury claims by 9.4%4

↓ meetings, reporting calls raising productivity by

20-25%4

+30% access to experts1

+20-25% productivity2

+15% revenue 1

+20% customer sat1

Pattern Buyers Pain Points Value Props & ROI

Customer Engagement

CMO, Digital Channel, Sales, Cust Service, Contact Center, CHRO

• Limited consistency across channels• 66% of consumers change service providers

from poor service

↑ Sales / Revenue↑ Brand awareness↑ Customer Sat

Recruiting & Onboarding

CHRO, COO, LOB• Accelerating time to productivity • Attracting talent that match skill & culture

↑ Speed to value↑ Employee engagement & revenue↑ Retention

Innovation R&D, Product Dev, CMO

• Less innovative than competition• Losing share• Limited product pipeline

↑ New products↑ Speed to market↑ % Revenue from new products

Mergers & Acquisitions

COO, Integration Exec• Over 50% of M&A fail to achieve plans• Overcoming two cultures• Losing focus on market

↑ M&A success rate (>50% fail)↑ Retention of talent↑ Revenue

Workplace & Public Safety

COO, EVP Operations, Safety Exec

• Incidents impacting morale and brand• Slow emergency response• Citizen safety

↓ Incidents↑ Workers comp savings↑ Saving lives

Expertise & Knowledge

LOB & Functional Execs• Higher cost of not knowing “experts”• Customers disengage from slow response

↑ Speed↑ Efficiency

Supply Chain EVP Manufacturing, Supply Chain Officer

• Unreliable demand forecasts • Matching supply & demand• Geographic, time, & language barriers

↑ Demand forecasting↑ Reaction for supply disruptions↑ Capacity planning

Patterns: The path from pain points through to solution

The Anatomy of a patternThe challenge engaging customers

•66% left due to poor service; cost = $5.9T

1

•Social customer tells 42 of good experience; 53 of bad

2

•Social Customers more loyal & spend 40% more

3

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Social builds Ongoing Relationships across touchpoints & channels

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Contact Center

Self Service

Store/Branch/Location

Maintenance/Repair

Face-to-Face

Kiosk

Social

Mobile

Amadori

Engaged younger audience

+125% new visitors

Reachable network of 14 million

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Are these examples repeatable?

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5 step recipe to repeatable success and ROI

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1. Start with business priorities

2. Identify roles, audiences, & processes

3. Demonstrate current pain

4. Embed social

5. Leverage process metrics

1. Start with Business PrioritiesOmron

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Business Challenge

Sales by country; clients span Geo

2 Divisions sell to same client

Results

Transform sales to be:

- Pan Geographic

- “One Omron to Client”

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2. Identify roles, audiences & processesGeneralized Sales example from client engagements

Sales

Product Management

Large Client

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3. Demonstrate the painChallenges

Sales Large Client

Knowledge of client

Where to get help

Ways to engage client

Communicating needs

Understanding proposal

Predicting benefits

Learning from similar companies

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Sales with ExpertiseProduct Management

3. Demonstrate the painChallenges

Training sales team

Client awareness

Innovating products

Want to help

Don’t know where help is needed

3. Demonstrate the painProcess interactions

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Sales

Product Management

Client

Sales + Expertise

Industry Peer

Falling sales and market share

High turnover in sales

Not leveraging expertise

Limited product innovation

4. Embed Social

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Bolt-on

4. Embed SocialNew process interactions

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Client Experience

Sales Experience

Product Mgmt

Experience

Sales

Product Management

Client

Sales with

Expertise

Industry Peers

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5. Leverage process metricsSales process metrics!

Conversion Rate Cost of SalesRevenue per

Customer

+15% +10% -10%

Sales

Product Mgmt

Client

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5. Leverage process metricsCalculating baseline

Sales

Product Mgmt

Client

Current conversion rate

Conversion rate with solution

Total # annual transactions

Average transaction value

Conversion Rate Cost of SalesRevenue per

Customer

“Sub Patterns”

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3Ps + 5 Steps = Repeatable Success and ROI

Processes

People

Patterns

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1. Start with business priorities

2. Identify roles, audiences, & processes

3. Demonstrate current pain

4. Embed social

5. Leverage process metrics

Business Partner are critical to success

Process is language of business

Show solution ROI

Show solution in day-in-the life (DITL)

Repeatable to any process

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How Patterns Help

Use existing patterns

Create new pattern examples

Create future state DITLs embedding solutions

Leverage Sales Play

Call to Action

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IBM’s provides unparalleled experience on how to achieve value

Define Business ValueEstablish Strategy Accelerate Adoption

Learn

Act

CXO Studies WhitepaperBusiness Patterns

Additional Questions?

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Talk with experts about the ways that

your business can benefit from Social Business Patterns!

Stop by the Social Business Patterns Lounge (Dolphin, Europe

5)

Monday 1PM - 6PM

Tuesday 9AM - 6PM

Wednesday 9AM - 6PM

Thursday 9AM - 12PM

Thank You

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@smith13sj

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Engage Online

SocialBiz User Group socialbizug.org– Join the epicenter of Notes and Collaboration user groups

Follow us on Twitter– @IBMConnect and @IBMSocialBiz

LinkedIn http://bit.ly/SBComm– Participate in the IBM Social Business group on LinkedIn:

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Social Business Insights blog ibm.com/blogs/socialbusiness– Read and engage with our bloggers

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