Smarter Planet V3

Mike HandesIBM Collaboration Solutions @mikehandes [email protected]

Social BusinessSocial Business

Instrument the world's systems

Interconnect them

Make them intelligent

““Watson is the latest example of IBM's 100-year history of scientific discovery.”Watson is the latest example of IBM's 100-year history of scientific discovery.”

- Sam Palmisano, Chairman and CEO of IBM

33 big ideas to build one smarter planetsmarter planet

Smartphone shipments will outpace PCs by 2012

Social networking accounts for 22% of all online time

Social data analytics opportunity will grow to 1 Zettabyte by 2011

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Every week, 42% of people use the wrong information to make decisions

91% of CEOs say they need to restructure the way their organizations work

Every week businesses waste 5.3 hours due to inefficient processes

Employees spend 25% of their time just looking for information

Business imperatives for Smart Work

Do we need to Work Smarter on a Smarter Planet?

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Source: Normalized results for Q2b (How important is it for your organization to address the following workforce challenges in the next 3 years?) and Q3 (How effective is your organization in addressing the following workforce challenges today?)

Relative future importance

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8

7

6

5

4

3

2

1

987654321

Sourcing and recruiting from outside the organization

Evaluating workforce performance

Efficiently allocating the workforce

Managing labor costs

Fostering collaboration and knowledge sharing

Rapidly developing workforce skills and capabilities

Enhancing workforce productivity

Retaining valued talent within the organization

Developing future leaders

Rel

ativ

e ef

fect

iven

ess

CHROs highlight three key workforce areas as significant opportunities for improvement

707 HR executive interviews

credit @davegray @dachisgroup http://www.flickr.com/photos/davegray/sets/72157626546771488/with/5640776283/ 5

Social Business MARKETMARKET

1 Source: McKinsey Global Survey; “How companies are benefiting from Web 2.0”2 Source: IDC, Predictions 2011: Welcome to the Mainstream3 Source: IDC, “Determining the Value of Social Business ROI: Myths, Facts, and Potentially High Returns” 4 Source: IDC, Worldwide Social Software Software MarketShare by Vendor5 Source: Gartner, “Study encourages businesses to embrace social networking”; Nikos Drakos

“It will eventually be seen as essential to all large firms, encouraging more open and transparent communications with staff around the world, and helping to improve relations with existing and potential customers.” 5

● 74%74% companies are integrating Web 2.0 with customer interaction1

● 75%75% companies are integrating Web 2.0 into employee day-to-day activities1

● 71%71% companies are integrating Web 2.0 with partner/supplier interaction1

● 69%69% companies report that Web 2.0 tools have delivered measurable business benefits1

● 38%38% estimated growth for the Social Business software market through 20142

● $2B $2B estimated Social Business software market size in 20143

● IBMIBM identified as the market share leader in Social Platforms in 20104

A Business

EngagedEngagedTransparentTransparent

AgileAgile

A SOCIALSOCIAL Business

Source: McKinsey Global Survey on Web 2.0 Adoption

68% - Increasing speed of accessto knowledge by avg 30%

54% - Reduce communicationscosts by avg 20%

35% - Increasing employeesatisfaction by avg 20%

43% - Increasing customersatisfaction by avg 20%

38% - Reduced marketing costsby avg 20%

Measurable Business Benefits of Web 2.0

Social Business DEMANDDEMAND

Customer Experience

Marketing Processes

Product Development

Customer ExperienceMarketing

Deepen relationships

with customers

Generate new ideas faster

Enable a more effective workforce

Operations, Human Resources

Business As Usual

Business Demands

● '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 Speed time to market and gain market sharegain market 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 Drives advocacy and more salessales through trusted relationships

ExceptionalExceptional

ExperienceExperience



Social Business EXPERIENCESEXPERIENCESDeepen client relationships

Optimize your workforce

IBM Social Business Framework

Social Business DEPLOYMENT MODELSDEPLOYMENT MODELS

On PremisesOn Premises

PublicPublicCloudCloud

Private Private CloudCloud




HybridHybrid

IBM Social Business Framework


Exceptional Experience

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

Goal: to shift culture towards more open collaboration across a global organization

Campaign: Project Shift - an internal social network

“It can make a big company look like a small company"

– Gilberto Garcia, Director of Innovation

Project ShiftDriving a measurable social transformation...

• Rapid organic adoption = 17000 employees connected in the first year, 400 new communities, innovation initiatives increased from 5 to 9

• Bring new products to market faster = 600 participants across several countries develop CEMEX' first globally-branded ready-mix product

For CEMEX, becoming a social business meansdeveloping a culture of knowledge and insight-sharing

Smarter Innovation

http://www.youtube.com/watch?v=YZA20c47fA8

● 3200 staff and 700 field data collectors – economic, business, environmental, population/demographic statistical outputs

● 9 offices located in all capital cities across Australia

Challenges● Recruiting quality staff● Virtual teams are a reality● Resource Constraints● Increasing demands● Security and

confidentiality

Knowledge fragmented Information hard to find External collaboration

requirements

Solution – IBM ● Needed to complement our existing

Workgroup Database and not replace

● Couple the new social computing features to the Workgroup Database

Benefits ● Online communities formed

around interests, technologies● Best practices now emerging from

these communities

● Speeding the induction process● New staff familiar with social tools● Induction focus on the context, “why”

rather than “how”

● Senior manages communicating with dispersed teams via Blogs

“With IBM Connections ABS can use business-grade social software, straight out of the box.” Dale Chatwin, Director, Knowledge Management Initiative, ABS.

IBM – A Social BusinessIBM – A Social Business

Suggested Reading: IDC Whitepaper - "Becoming a Social Business: The IBM Story"; January 2011ftp://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

─ $90 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

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Contextual Integrated MobilePersonalised

One Click Discoverable OpenSecure


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2010 IBM Global CEO Study

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

2010 Gartner CEO and Senior Business Executive Survey*

*Source = Gartner Research. Mark Raskino, Jorge Lopez. March 29, 2010

The top three business priorities for 2010 are:● Retaining and enhancing

existing customers● Maintaining competitive

advantage ● Attracting new customers

Retaining Customers is Linked to Profitability

● A 2% increase in customer retention has the same effect on profits as cutting costs by 10%● A 5% reduction in customer defection rate can increase profits by 25-125%, depending on industry● Acquiring new customers can cost 5x more than satisfying and retaining current customers


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Exceptional Web Experiences Deliver Better Business Outcomes

Business advantage Technology advantageConversation spectrum

● HSBC realized a 35% improvement in marketing campaign revenue

● Bharti-Airtel grew subscribers from 6 million to 110 million in six years while providing quality services and support online

● Lufthansa supports 16,000 customer check-ins/day. In 2008, 3.7 million online flights were booked, growing by 37% in 2009

● Lufthansa handles 10,000 people making travel requests every second

● LA County offers a consistent online experience across 38 departments for 10.4 million constituents

● Boston Medical increased referrals by 30% and reduced no-show rates by 10%

● Woodmen of the World reduced call center support calls by 30%

● Miami-Dade County saved $1 million per year in labor costs

● US Army saves $1.3 Billion per year supporting 1.4 million Army personnel

● Harley-Davidson improved IT efficiency by 80%

● Wimbledon efficiently scaled its website to serve 12.3 million people in 2009, 23% more than in 2008

Growth Customer Satisfaction Efficiency

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● Credit limit changes have more than doubled in volume- Online fulfilment has taken an additional 30% of fulfilment from more expensive channels- August provided more than 6 times completion of credit changes from the 3 months prior

to launch.● Nearly 20% of customer base opted out of paper statements● Average logins/month for last 3 months has increased by 48% from the first 3 months of the

year

● Online contact detail updates tripled● Average Net Promoter Score (customer satisfaction metric) increased 6 times, with customer

satisfaction rising from 91% to 96% average

The outcomes – in only 4 months

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Increase Revenue

Customer

Satisfaction Reduce

Cost

Rising Customer

Expectations

Mobile Explosion

Social Everywhere

Internet Warp Speed

Focus on the Customer

Summary

Social Business Delivers

Better Business Outcomes

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Increase Revenue

Customer

Satisfaction Reduce

Cost

Rising Customer

Expectations

Mobile Explosion

Social Everywhere

Internet Warp Speed

Focus on the Customer

Summary

Social Business Delivers

Better Business Outcomes

People are amazingEXPECT & CELEBRATE the UNEXPECTED

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Mike HandesA/NZ LeadCollaboration Solutions

601 Pacific HighwaySt Leonards NSW 2065

Tel: +61 402 090 [email protected]

Thanks!

Smarter Planet V3

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