Download - 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
3
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?
4
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
9
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
credit @davegray @dachisgroup http://www.flickr.com/photos/davegray/sets/72157626546771488/with/5640776283/ 6
credit @davegray @dachisgroup http://www.flickr.com/photos/davegray/sets/72157626546771488/with/5640776283/ 7
credit @davegray @dachisgroup http://www.flickr.com/photos/davegray/sets/72157626546771488/with/5640776283/ 8
credit @davegray @dachisgroup http://www.flickr.com/photos/davegray/sets/72157626546771488/with/5640776283/ 9
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
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
ExceptionalExceptional
ExperienceExperience
ExceptionalExceptional
HybridHybrid
IBM Social Business Framework
ExperienceExperience
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
● 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
21
Contextual Integrated MobilePersonalised
One Click Discoverable OpenSecure
Exceptional Experience
22
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
Exceptional Experience
23
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
24
● 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
25
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
26
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
28
Mike HandesA/NZ LeadCollaboration Solutions
601 Pacific HighwaySt Leonards NSW 2065
Tel: +61 402 090 [email protected]
Thanks!