Global 2000 Innovation - IBM Service Thinking Cases

Global 2000 Innovation-IBM Service Thinking Project

Ana Cristina GarciaAnna DimerinOlga StrykAna Maria RodriguezCarolina Harumi SugaiMohamed Temraz

Historical Service Thinking Case Study ApplicationsJul 8, 2013

Agenda

IBM Global 2000-Service Innovation Project July 8, 2013 Slide 2 of 20

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Company and Offering - IBM & Social Business

Service Thinking Applied To Three Companies Summary

Fluor Press Release & Service Thinking Analysis

Curam Press Release & Service Thinking Analysis

Brainmates Press Release & Service Thinking Analysis

References & Appendix

International Business Machine (IBM) has various offerings powered by both traditional and social business platforms• Global Fortune 2000 Ranking: 20• $104 Billion in Revenue in 2012• $20 Billion financing for acquisitions through 2015

* CNN Money* IBM annual Report

Products

• Wide range of products across different industries

• Software, Hardware, Storage, Servers, PCs & others

• Products are typically prepackaged and standardized

Services Solutions

• Business Services, including business strategy & consulting

• IT services including cloud, big data and Integration services

• Outsourcing, training, financing and other services

• Spearheaded by global IBM services

• Feature a complete turn-key offering

• Can be tailored to corporation size

• Standardized or customized to customers’ unique problems

• Can be leveraged for social business offerings

*Other IBM Initiatives• Smarter Planet• Business Analytics• Growth Markets• Cloud Initiative


Technology Industry Trends

Social Business Platforms

Social business trends are transforming the way companies are doing business

TechnologyConsolidation


All/OnlyMobile

Cloud

Big Data

Gamification

Social Re-engineering

Social Networks

Service Oriented- Business Model

• Personalization & Customization• Fermium & Multi-sided markets• Faster product lifecycle

• Faster Access to information• Increased Productivity• Low boundaries

• Increased customer engagements

• Viral & passive marketing

• Outsourced S&HW• Enhanced Security• Collaborative Offerings

• Software defined networks•Virtual infrastructure•Flexible design

• $10 B Market 2012• Predictive Modeling• Data Analytics

• 62% of Fortune 100 have public app• Easier to monetize• Light infrastructure requirements

• Customer Sentiment• Influence product selection• Faster Feedback

Social business trends are transforming the way companies are doing business (Continued)

SOCIAL BUSINESS TRENDS

• New ways to communicate in personal lives using social and collaborative technologies

• Adaptation of workforce technologies to support increasing social interactions

• Social and collaborative technologies contribute to firms’ competitive advantage

• 49% of enterprises planned to invest in Enterprise Social Business in 2012 (source: Forrester Research, Inc.; “Mapping the value of social business and collaboration”)

• Telecommuting practice is getting more wide-spread


Social Business

SaaS has driven companies to embrace social business platforms

* Source: Forrester Research, Inc.; “The Forrester Wave: Cloud Strategies of Online Collaboration Software Vendors”


* Source: Forrester Research, Inc.; “The Forrester Wave: Cloud Strategies of Online Collaboration Software Vendors”

IBM offerings are leading the social business sphere with strong strategy and performance among competitors


IBM provides comprehensive social business offerings that empower companies to better serve their customers

*Source: IBM Social Business offerings

Features

• IBM enterprise experience translates into competitive online collaboration offerings

• Offering both on-premise collaboration software and hosting services of collaboration technologies

• Internal and external collaboration

• Cloud based

• Available via Android, iOS and BlackBerry

Offerings

• Social Networking Platform to engage employees, partners, clients (IBM Connections, IBM Connections Suite, IBM Notes and Domino, IBM Sametime)

• Social Analytics Platform to analyze information gathered through social media (IBM Connections, SPSS Modeler, Cognos 10)

• Social Integration Platform to give users a single point of access to the applications, services, information and social connections (WebSphere Portal family of offerings)

• Social Content Platform to share ideas, locate expertise, and access relevant knowledge via professional social networks (Connections Enterprise Content, Content Navigator)


http://www.ibm.com/software/lotus/products/connections/

http://www.ibm.com/software/lotus/products/connections/

Service thinking principles applied to Fluor• Fluor attributes its industry leadership in the engineering and construction market to the innovation and

creativity of its employees who help to design, build and maintain many of the world's most challenging and complex capital projects.

• Fluor Corporation is using IBM social software to empower its workforce to more effectively communicate, collaborate and spur innovation across its construction sites and engineering offices.

Co-Creation

• Using IBM's industry leading enterprise social networking platform, employees across 60 global office locations on six continents are now united, able to find colleagues with unique expertise to develop and implement innovative solutions for project issues in diverse industries

• "A social intranet powered by IBM is transforming how we do business and creating a more connected workforce across departments, geographies and the world."

Service Systems

• IBM today announced that Fluor Corporation, a global leader in engineering, construction and project management, is using IBM social business technology to connect its global workforce, unifying its 43,000 employees around the world.

• The ability to share knowledge and expertise across the organization in real-time is crucial when decisions need to be made at a moment’s notice on a job site.

Componentized Business

Architecture

• In a matter of weeks, more than half of Fluor's global workforce joined the social networking platform, uploading profile pictures, detailing expertise and making new connections.

• The intranet, powered by IBM Connections and IBM WebSphere Portal, contains more than 11 news and information portals and more than 1,200 collaboration spaces with almost 2,000 active forum participants in the Connections tool allowing the Fluor workforce to be more collaborative, responsive and innovative.

Glo-Mo-So

• By helping its engineers, professional staff and construction workers collaborate, Fluor is encouraging a deeper level of innovation and knowledge among its workforce.

• They are unlocking new sources of value every day.RTI

• The ability to share knowledge and expertise across the organization in real-time is crucial when decisions need to be made at a moment’s notice on a job site.

• Today, organizations that are using social technology to engage and empower their employees are improving productivity and unleashing innovation to gain competitive advantage. […] people-focused businesses generated 26 percent more revenue per employee and had 40 percent lower turnover rates.

Multi-Sided Metrics


Principle Questions Phrases from PR Impact: Revenue, Profit, Brand, etc.

1. Co-creationHow do we empower employees to reach their highest potential in a collaborative environment?

Fluor Corporation is using IBM social software to empower its workforce to more effectively communicate, collaborate and spur innovation across its construction sites and engineering offices.

Improvement of efficiency due to employees collaboration within the company

2. Service SystemHow are there being developed new interactions that involve several stakeholders within the system?

[…] employees across 60 global office locations on six continents are now united, able to find colleagues with unique expertise to develop and implement innovative solutions for project issues in diverse industries

Share of expertise and know how will improve company performance

3. ComponentsWhich are the hot spots? Is there a business component for which external specialization is required?

[…] Fluor Corporation, a global leader in engineering, construction and project management, [..]Fluor using IBM social business technology to connect its global workforce, unifying its 43,000 employees around the world.

The outsource of the online platform allows the company to focus in the core of the engineering, construction and project management business, improving the brand and making strong the core business

4. Platform Glo-Mo-So How fast can it grow? In a matter of weeks, more than half of Fluor's global workforce joined the social networking platform, uploading profile pictures, detailing expertise and making new connections.

Increase in revenue because it's scalable for being a Glo-Mo-So Platform

5. Run-Transform-Innovate What is the continuous improvement discipline?

By helping its engineers, professional staff and construction workers collaborate, Fluor is encouraging a deeper level of innovation and knowledge among its workforce.

Empowering the employees to work in innovation across boundaries promotes an environment that allocates resources in innovation almost in parallel as to day to day work

6. Multi-sided Metrics What are the new KPI's implemented in the organization?

Today, organizations that are using social technology to engage and empower their employees are improving productivity and unleashing innovation to gain competitive advantage.

Employee-empower business is expected to generate 26 percent more revenue per employee and had 40 percent lower turnover rates.

Service thinking principles applied to Fluor (Summary)


Service thinking principles applied to Cúram • Cúram Social Program Management is the leading solution for supporting the end-to-end social program

delivery process. By designing around the client, Cúram Social Program Management empowers organizations to collaborate around client needs, making access to governmental services easier for the citizen and, more importantly, more effective in achieving desired social goals.

Co-Creation

• The company (Cúram) expands IBM’s ability to help cities and governments serve citizens better by adopting more intelligent and efficient ways to assess needs, execute social programs, and maximize program results.Service Systems

• Since 1999, IBM and Cúram have collaborated on federal, state, local, and provincial-level social program solutions around the world. More than 90 percent of Cúram’s clients use IBM WebSphere middleware and nearly 70 percent of its clients use IBM hardware. Cúram’s software is certified for use with the IBM Government Industry Framework and has been part of IBM Global Business Services’ Integrated Case Management solution since 2001.


Architecture

• Cúram Software is used in more than 80 government agency projects around the world to provide the most appropriate social programs to citizens and their families in a timely manner, deliver services more effectively and continuously monitor progress toward achieving people’s social and economic potential.

Glo-Mo-So

• Through its Smarter Cities initiative, IBM helps cities and governments serve citizens better by adopting more intelligent and efficient ways to analyze data, anticipate problems and coordinate resources.RTI

• IDC Government Insights estimates the new Smarter Cities information technology opportunity at $34 billion in 2011, increasing more than 18 percent per year to $57 billion by 2014.

Multi-Sided Metrics


Service thinking principles applied to Curam (Summary)


Principle Questions Phrases from PR Impact: Revenue, Profit, Brand, etc.

1. Co-Creation How do we leverage client involvement in order to better serve them and the public?

Cúram Social Program Management is the leading solution for supporting the end-to-end social program delivery process. By designing around the client, Cúram Social Program Management empowers organizations to collaborate around client needs, making access to governmental services easier for the citizen and, more importantly, more effective in achieving desired social goals.

Participation of both client and citizen to expedite improvement of IBM services.

2. Service System How can Cúram and IBM work together systematically to offer new and better services?

The company (Cúram) expands IBM’s ability to help cities and governments serve citizens better by adopting more intelligent and efficient ways to assess needs, execute social programs, and maximize program results.

Improves IBM’s offering by way of a more comprehensive service. Impacts competitive advantage.

3. Components At what point should IBM absorb a partner’s services as its own after outsourcing or collaborating with them?

Since 1999, IBM and Cúram have collaborated on federal, state, local, and provincial-level social program solutions around the world. More than 90 percent of Cúram’s clients use IBM WebSphere middleware and nearly 70 percent of its clients use IBM hardware.

Improved platform to serve its clients through this acquisition.

4. Run-Transform-Innovate

How can IBM continually focus on the more innovative aspects of its services?

Through its Smarter Cities initiative, IBM helps cities and governments serve citizens better by adopting more intelligent and efficient ways to analyze data, anticipate problems and coordinate resources.

By acquiring Curam, IBM is now better able to more efficiently and intelligently analyze data.

5. Platform Global/Mobile/Social

How scalable is this service? Cúram Software is used in more than 80 government agency projects around the world to provide the most appropriate social programs to citizens and their families in a timely manner, deliver services more effectively and continuously monitor progress[…].

With the use of Curam, IBM is better able to scale its Smarter Cities offering through Curam’s social platforms available globally and easily.

6. Multi-sided Metrics

What KPIs are impacted with this acquisition?

IDC Government Insights estimates the new Smarter Cities information technology opportunity at $34 billion in 2011, increasing more than 18 percent per year to $57 billion by 2014.

Aside from impacting both IBM and Curam, this integration impacts overall city performance and welfare of people.

• the opportunities and challenges that social media presents to product managers and learn how it is currently being used and how it may shape or change the product management role in future.

• “Social media provides product managers with an opportunity to join online conversations. This can help in understanding what customers like, what they don’t like, what they want and how they want it […]”

Co-Creation

• offers ‘on-tap’ product management services to businesses that need to launch or change products quickly in a resource constrained environment. Their Product Management services and training courses help businesses remain agile and dynamic in competitive markets.

• Brainmates experience extends to strategic and operational product involvement on numerous telecommunication and new media products and services.

Service Systems

• Brainmates leads companies to define, develop and deploy customer-centric products and services. We offer professional consulting services and training and have helped leading clients […] to enhance their products and services.

• Brainmates facilitates innovation and the commercialization of ideas, while creating effective product strategies that strengthen brands.


Architecture

• Boutique olive oil producer Moon over Martinborough first used social media as the building block to create its entire business and is now driving global demand for their product.Glo-Mo-So

• teams to identify new markets for their products and to best solve customer problems with the resources available to them. The result will deliver a combination of creative innovation tools to challenge existing ideas and market expectations, along with best practice product management methods to turn the resulting innovation ideas into commercial realities.

RTI

• Monitoring and listening: 67% keep track of trends amongst customers, competitors and community. • Promoting and sharing: 66% provide relevant and useful information about their product.• Gathering feedback: 29% use it for feedback, 60% intend to increase this in the next twelve months• Collaborating: 65% - degrees to which buyers, users and other stakeholders are integrated into the entire

product management process, from ideation through to the creation of new products and services.

Multi-Sided Metrics

Service thinking principles applied to Brainmates


Principle Questions Phrases from Website Impact: Revenue, Profit, Brand, etc.

1. Co-Creation How can engaged employees help customers drive decisions in product development within the organization?

.“Social media provides product managers with an opportunity to join online conversations. This can help in understanding what customers like, what they don’t like, what they want and how they want it. This insight is useful in the design, development and deployment of products.”

Companies will have improved brand image and product performance perception due to a more efficient integration in consumer's preferences. Products will have increased profitability due to efficient features that will target consumer specific needs.

2. Service System How is there a shift in work, skills, information, risk, resource sharing between provider, customer, and other entities?

only Product Management agency in Australia that offers ‘on-tap’ product management services to businesses that need to launch or change products quickly in a resource constrained environment. Brainmates experience extends to strategic and operational product involvement on numerous telecommunication and new media products and services.

Helps companies use resources such as social media to enhance their services /products and as important communitation channel with their customers. Being the only agency to offer these services gives them an unique value proposition to customers.

3. Components Which service component can Brainmates sell to help other companies focus on their core activities?

professional consulting services and training […] to enhance their products and services. Brainmates facilitates innovation and the commercialization of ideas, while creating effective product strategies that strengthen brands.

Service that allows companies to outsource Project Management activities. Being the specialized service company they can offer higher productivity, higher quality and also help the clients bring the cost down.

4. Run-Transform-Innovate

What are market expectations and best practices and how we can challenge it?

[..] deliver a combination of creative innovation tools to challenge existing ideas and market expectations.

By focusing on their core, they can identify new markets and bring innovation to the market always challenging themselves to overcome market expectations.

5. Platform Global/Mobile/Social

What is our pace of change? […] social media as the building block to create its entire business and is now driving global demand for their product

Helps local companies leverage on social media to become global.

6. Multi-sided Metrics Who are our stakeholders and how can we make sure to put their feed back into actions?

Degrees to which buyers, users and other stakeholders are integrated into the entire product management processMonitoring and listeningPromoting and sharingGathering feedback

Knowing all the stakeholders involved and their importance in order to put their voice into action and improve products, business and strategy.

Service thinking principles applied to Brainmates (Summary)


Fluor Curam Software BrainmatesFortune 500North America, Latin America and Caribbean, Asia, Middle East, Europe, Australia & NZ, Africa

Mainly Regional: Headquarters in Dublin, IrelandOffices in Herndon, VA.; Toronto; Frankfurt, Germany; Canberra, Australia and Bangalore, India

Startup: Sydney, Australia

Revenue: $27,577m YE2012 About $79.8 m Rev/Yr Less $10m Rev/Yr

Press Release:http://www-03.ibm.com/press/us/en/pressrelease/40217.wss

Press Release:http://www-03.ibm.com/press/us/en/pressrelease/36373.wss

Company Information:http://www.brainmates.com.au/

Service Thinking Phrases Service Thinking Phrases Service Thinking Phrases

Value Co-Creation: […] empower its workforce to more effectively communicate, collaborate and spur innovation across its construction sites and engineering offices.

Value Co-Creation: […] Cúram Social Program Management empowers organizations to collaborate around client needs,[…]

Value Co-Creation: “Social media provides product managers with an opportunity to join online conversations. [...]"

Service System: […] employees across 60 global office locations on six continents are now united

Service System: The company expands IBM’s ability to help cities and governments serve citizens better […]

Service System: Brainmates experience extends to strategic and operational product involvement on numerous telecommunication and new media […]

Components: […] Fluor using IBM social business technology to connect its global workforce, unifying its 43,000 employees around the world.

Components: Since 1999, IBM and Cúram have collaborated on federal, state, local, and provincial-level social program solutions around the world.

Components: Brainmates leads companies to define, develop and deploy customer-centric products and services.

Platform: In a matter of weeks, more than half of Fluor's global workforce joined the social networking platform […]

Platform: Cúram Software is used in more than 80 government agency projects around the world […]

Platform: We [Brainmates] collaborate with clients in a diverse range of industries […]

Run-Transform-Innovate: [With IBM’s new platform] They are unlocking new sources of value every day.

Run-Transform-Innovate: IBM helps cities and governments serve citizens better by adopting more intelligent and efficient ways to analyze data […]

Run-Transform-Innovate: [Brainmates ‘s] Product Management services help businesses remain agile, innovative and dynamic in competitive markets.

Multi-sided Metrics: […] people-focused businesses generated 26 percent more revenue per employee and had 40 percent lower turnover rates

Multi-sided Metrics: […] the new Smarter Cities information technology opportunity at $34 billion in 2011, increasing more than 18 percent per year to $57 billion by 2014.

Multi-sided Metrics: Monitoring and listening, Promoting and sharing, Gathering feedback, Collaborating

Impact: Employee-empowered business is expected to generate 26 percent more revenue per employee and had 40 percent lower turnover rates

Impact: With the use of Curam, IBM is better able to scale its Smarter Cities offering through Curam’s social platforms available globally and easily.

Impact: Brainmates will help companies manage resources efficiently to grow business from local to global in reduced time.

Service thinking principles are evident in IBM partnerships

http://www-03.ibm.com/press/us/en/pressrelease/40217.wss





http://www.brainmates.com.au/

Appendix

References • Brainmates (2013) http://www.brainmates.com.au/• Fluor (2012) Fluor 2012 Annual Report http://www.fluor.com• Forrester Research, Inc. The Forrester Wave: Cloud Strategies of Online Collaboration Software Vendors• IBM (2013) Social Business

http://www.ibm.com/social-business/us/en/explore-solutions.html#services• IBM (2011) IBM Extends Smarter Cities Initiative through Acquisition of Cúram Software. http://

www-03.ibm.com/press/us/en/pressrelease/36134.wss• IBM (2013) Fluor Connects its Global Workforce and Drives Innovation with IBM Social Business

Software http://www-03.ibm.com/press/us/en/pressrelease/40217.wss• CNN Money, IBM Fortune 500 Ranking,

http://money.cnn.com/magazines/fortune/fortune500/2011/snapshots/225.html• IBM Annual Report 2012. http://www.ibm.com/annualreport/2012/bin/assets/2012_ibm_annual.pdf• Mckinsey Insights & publications, how social technologies are extending the organization, http

://www.mckinsey.com/insights/high_tech_telecoms_internet/how_social_technologies_are_extending_the_organization

• Accenture, Technology Vision 2013, http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Technology-Vision-2013.pdf

• Deloitte, Tech Trends of 2013, Elements of Post Digital, http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/Consulting/Technology/TechTrends13/us_cons_techtrends13.pdf


http://www.brainmates.com.au/

http://www.fluor.com/

http://www.ibm.com/social-business/us/en/explore-solutions.html





http://money.cnn.com/magazines/fortune/fortune500/2011/snapshots/225.html

http://money.cnn.com/magazines/fortune/fortune500/2011/snapshots/225.html

http://www.ibm.com/annualreport/2012/bin/assets/2012_ibm_annual.pdf

http://www.ibm.com/annualreport/2012/bin/assets/2012_ibm_annual.pdf

http://www.mckinsey.com/insights/high_tech_telecoms_internet/how_social_technologies_are_extending_the_organization



http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Technology-Vision-2013.pdf

http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Technology-Vision-2013.pdf

Social technology adoption rates


*source: Mckinsey insights & publications , How social technologies are extending organizations

Adoption of social technologies across industries



Social Technology Benefits



Global 2000 Innovation - IBM Service Thinking Cases

Technology

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