The Social Business:Challenges and Opportunities
Stuart J. McRaeExecutive Collaboration & Social Business EvangelistIBM
[email protected] www.twitter.com/smcraewww.linkedin.com/in/stuartmcrae www.facebook.com/sjmcrae www.smcrae.com
Brussels, 8th July 2014
The Internet and BusinessFirst came the World Wide Web...
Internet ofInformation
The Internet and Business… then eBusiness came along ...
Internet ofInformation
Internet ofProcesses
The Internet and Business… and now we are in the social era ...
Internet ofInformation
Internet ofProcesses
Internet ofPeople
The Internet and Business… but it won't stop there ...
Internet ofInformation
Internet ofProcesses
Internet ofPeople
Internet ofThings
InstrumentedInterconnected
Intelligent
The Internet and Business… as we find more and more ways to use digital content
Internet ofInformation
Internet ofProcesses
Internet ofPeople
Internet ofThings
InstrumentedInterconnected
Intelligent
ANALYTICS
Big Data
CognitiveComputing
"We tend to overestimate the effect of a technology in the short runand underestimate the effect in the long run"
- Amara's Law, Roy Amara, Institute for the Future
Change doesn't just stop
Watson, who is nearby and can fix the teleporter?
The Social Internet is already changing business (again)
More companies NOW use socialinternallythan externally
We are entering the Post-PC era with Apple selling 100M iPads in 2013, shifting usage from creation at desks to consumption on the move
66% of top financially performing companies leverage social in their business processes
Sources: Twitter, Jeff Bullas; Pew Internet & American Life Project; IDC; LinkedIn; The Real Time Report; Regalix; CultOfMac; McKinsey
McKinsey estimate that social technologies could raise the productivity of interaction workers by20-25%
Public social networking has proven the power of conversations and relationships
Four technology megatrends are driving social business… and causing disruptive change because they are happening together
A social business isn't just one that uses Twitter & Facebook
It is one that leverages the latest technologies,including Social, Mobile, Analytics, Cloud
to build employees' internal& external relationships
to collaborate with its partners to manage its talent to delight its customers to improve its processes to innovate
… to deliver better business results
These new technologies are challenging the way we work
Pressure to build and share expertise for competitive advantage
Increasingly influential and vocal customers
Growing demand for 24/7and mobile connectedness
Complex ecosystems require collaboration outside the company
Social Businesses respond to these challenges
Culture
Technology
SocialBusiness
engage employees
in conversations with customers
collaborate withpartners to
servecustomers
better encourage employees to collaborate not to competewith each other
Internal External
open upaccess to
knowledge &expertise topartners
engagecustomers via social networks web, mobile,
voice & video
provide an open, simple, integrated, collaborative workplace
But require new platforms of engagement to succeed
Culture
Technology
SocialBusiness
engage employees
in conversations with customers
collaborate withpartners to
servecustomers
better encourage employees to collaborate not to competewith each other
Internal External
open upaccess to
knowledge &expertise topartners
engagecustomers via social networks web, mobile,
voice & video
provide an open, simple, integrated, collaborative workplace
To empower their people to execute better
Market Management Process: MarketingDo market segmentation in real-time and allow the marketing team adjust advertising on the fly
Critical Situation Process: Customer ServiceFind who can best help me address this urgent problem for my client
Software Deployment Process: ITFind the technical expertise and institutional knowledge to fix an error in our ERP system
Talent Management Process: HRAnticipate and react competitive poaching of top talent
Lead Development Process: SalesUse predictive analytics on every customer
interaction to gather insights into what customers will buy next
IBM White Paper on Applying Social Business: http://bit.ly/1i8iUPn
Enabling Social Businesses to deliver better results
Improve Customer ServiceCan achieve 5% reduction in customer defection rate increasing profits by up to 68% (2)
Speed up Product Development
Can develop and bring new products to market in 1/3 time (3)
Increase SalesCan increase sales manager revenue by 40% and improve efficiency by up to 50% (1)
Better Marketing Can achieve 100% increase in market exposure (4)
Source 1: VCC case study, Source 2:Bain & Co Source 3: Cemex case study, Source 4. Amadori case study Source 5:Independent Study by The Corporate Executive Board, 2004Source 6 Cars.com Case study, Source 7 Robinson Club
Maximize ProductivityCan retain the knowledge of seasonal staff within the company, and thus increase customer satisfaction in our resorts (7)
Reduce Employee Turnover Can reduce turnover, highly engaged employees are 87% less likely to leave their organizations than highly disengaged employees(5) Increase Visibility
Can increases website traffic by 145 million visits (6)
Example: Governments traditionally rolled out generic programsWhich either met the needs of the individual, or didn't...
The digital era should be transformativeAs each individual citizen select personalised services from a menu available to them
Which requires collaboration across the Public SectorNot just integrating IT systems, but collaboration between employees
OneIntegratedExperience
Key challenges for government in the social era: Inter-departmental, agency, authority
collaboration Collaboration with the third (voluntary) sector Working with small & medium enterprises Engagement with communities of citizens
For years we have said that
we need moreIT people who
understand Business
Tomorrow we don't needmore IT people
who understand business...
we need morebusiness people who
understand technology
Social Business is an enabler for the transformation of IT
Self Service IT, Bring Your Own Device and Software as a Servicewill commoditise many IT services as well as the end points
leaving IT free to focus on advising, coaching, and compliance for“User Generated Everything”
Source: Tim Banting, Current Analysis, LinkedIn Update
2004“Why People Still Matter”
by Levy and Murnane
… discussing the difficulties of replicating human perception,asserted that driving in traffic is insusceptible to automation“executing a left turn against oncoming traffic involves so many factors that it is hard to
imagine discovering the set of rules that can replicate a driver’s behaviour”
2004“Why People Still Matter”
by Levy and Murnane
… discussing the difficulties of replicating human perception,asserted that driving in traffic is insusceptible to automation“executing a left turn against oncoming traffic involves so many factors that it is hard to
imagine discovering the set of rules that can replicate a driver’s behaviour”
2010Google
announces that it had modified severalToyota Prius' to be fully autonomous
2013
“According to our estimates, about 47 percent of total US employment is at risk.”
“While 19th century manufacturing technologies largely substituted for skilled labour through the
simplification of tasks... the Computer Revolution of the 20th century caused a hollowing-out of
middle-income jobs”
bit.ly/1hykTLK
Business models and business structures are changing
“Kodak was founded in 1880, and at its peak employed nearly 145,300 people...
Kodak’s founding family, the Eastmans, became wealthy”
“Instagram was founded in 2010 by a team of fifteen people. In 2012 it was sold to Facebook for over $1bn.
Facebook, worth far more than Kodak ever was, employs fewer than 5,000 people. At least ten of them have a net worth of ten times that of George Eastman.”
http://bit.ly/MOzgzE
“...even accountants & lawyers will start to feel the heat...”
We are inventing new, innovative ways of doing business...
Nick D'Aloisio created Summly in 2011...aged 15...
in 2013 (at 17) it was bought by Yahoo!...reportedly for $30M...
in 2014 Yahoo News Digest was announced
… requiring an emphasis on different skillsas people are focussed on where they can add value
InnovationThought
Problem solvingFace to face
Empathy
Persuasive Selling
Caring
Creativity
Personal ServiceExclusive
Luxury
Social TalentOriginalityUnderstanding
Fine arts
Leadership
Dexterity
Authority
Collaborative
Engaged
Stuart J. McRaeExecutive Collaboration & Social Business EvangelistIBM
[email protected] www.twitter.com/smcraewww.linkedin.com/in/stuartmcrae www.facebook.com/sjmcrae www.smcrae.com
Brussels, 8th July 2014
Thank You.
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