service thinking hypothetical case: starbucks, stefanini, restorando
TRANSCRIPT
Service Thinking Hypothetical Case: IBM and Social Business
Ana Cristina Garcia
Starbucks, Stefanini IT Solutions, Restorando.com
Jul 30, 2013
Outline
IBM Global 2000-Service Innovation Project July 30, 2013 Slide 2 of 20
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Company and Offering - IBM & Social Business
Three Companies Summary
Starbucks Press Release & Service Thinking Analysis
Stefanini Press Release & Service Thinking Analysis
Quasar and Restorando Press Release & Service Thinking Analysis
References & Appendix
Technology Industry Trends
Social Business Platforms
Social business trends are transforming the way companies are doing business
TechnologyConsolidation
IBM Global 2000-Service Innovation Project July 30, 2013 Slide 4 of 20
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
IBM Global 2000-Service Innovation Project July 30, 2013 Slide 9 of 20
Starbucks Connects its Global Partners and Improves Efficiency with IBM Social
Business Software
ARMONK, N.Y. - 29 Jan 2014: IBM (NYSE: IBM) today announced that Starbucks Corporation (NYSE: SBUX), the
world’s largest coffee retailer is using IBM social business technology to connect its large list of partners around the globe,
including the ones inside and outside the company. With this new platform, Starbucks will be able to leverage business
expertise and improve communications and efficiency in its operations.
Starbucks has a wide geographic presence, with operations in more than 50 countries. There, the company has not only a
significant number of company-owned retail stores, but also has relationships with multiple partners that include local
retailers, other suppliers, and manufacturing and IT firms. Therefore, and moving forward with its commonly known trend
of leveraging technology in order to strengthen its operations, is using IBM’s industry leading enterprise social networking
platform to transform the way it manages its partners. The software plays a key role in Starbucks’ strategy of expanding its
global retail business in both new and existing markets.
Its retail stores, which include company-operated and licensed, exceed the 18,000 in North America, Latin America,
Europe and Asia. With the intranet, powered by IBM connections, Starbucks’ 160,000 employees will be able to
collaborate and share best practices in order to perform in their daily tasks, by leveraging expertise across borders. At the
same time build up on innovations on how to provide an exceptional customer experience.
The implementation of the intranet is planned to reach North America’s employees in the first month and worldwide
workforce in a period of five months. It is expected to contain around 100 information portals over 5,000 collaboration
spaces that will provide the space for over 200,000 new connections to be formed. Using IBM’s platform, the learning
curve of employees in a new store is expected to be reduced by half, and number of innovation ideas to improve process
or product in my Starbucks idea portal is expected to improve by 100%. Both KPI’s will improve brand image and
employee’s working environment.
Starbucks will also engage its business partners through IBM social networking platform, as they are crucial for its growth
strategy. This engagement will allow partners to easily identify key contacts within the organization and better familiarize
with Starbucks’s culture and processes, especially for local retail players in new markets. Similarly, the platform will
improve collaboration and efficiency in real time particularly in product development process with coffee makers, and other
manufacturing suppliers. Overall it will maximize the partnership value, and generate cost savings in many fronts.
The implementation of the social networking platform for external partners is expected as a second phase of the project
and will begin in January of next year. It is expected to engage 30% of the key strategic partners in the first 6 months, and
the remaining before the end of the year.
Service thinking analysis of Starbucks CorporationC
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ion Q: How do we empower internal an external partners to make them the main drivers of operation improvement?
Phrase from PR: […] employees will be able to collaborate and share best practices in order to perform in their daily tasks, by leveraging expertise across borders
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Q: What is the continuous improvement discipline?
Q: How fast can it grow?
Q: How is there a shift in the way we connect knowledge, people and technology?
Q: Is there a business component for which external specialization is required?
Phrase from PR: [Starbucks] , is using IBM’s industry leading enterprise social networking platform to transform the way it manages its partners.
Phrase from PR:[Starbucks ] the world’s largest coffee retailer […] moving forward with its commonly known trend of leveraging technology in order to strengthen its operations, is using IBM’s industry leading enterprise social networking platform.
Phrase from PR: The implementation of the intranet is planned to reach North America’s employees in the first month and worldwide workforce in a period of five months.
Phrase from PR: […] the platform will improve collaboration and efficiency in real time particularly in product development process with coffee makers, and other manufacturing suppliers.
Q: What are the new KPI's implemented in the organization?
Phrase from PR: […] learning curve of employees in a new store is expected to be reduced by half, number of innovation ideas to improve process or product is expected to improve by 100%
Time efficiency
Growth Rate
Partner experience
Impact:
Global Reach
Cost Savings
Innovation
IBM Global 2000-Service Innovation Project July 30, 2013 Slide 9 of 20
IBM Consolidates its Business in Emerging Markets through Acquisition of
Stefanini IT Solutions
SAO PAULO – 14 December, 2014: Today IBM (NYSE: IBM) announced that it has completed its
acquisition of Stefanini IT solutions, a leading provider of a wide variety of IT services that include
consulting, integration and infrastructure outsourcing, and financial services. This acquisition will allow IBM
to consolidate its business in emerging countries, especially in Latin America, leveraging on Stefanini’s
talented local workforce, new connections with different stakeholders, and proven ability of revenue growth.
Operating in 28 countries and 67 cities around the world in all continents, Stefanini has a talented work
force of over 13K employees who support its operations (over 70% of them located in South America). Its
rapid expansion in China proves Stefanini’s knowledge on how to implement business practices in Latin
America’s countries in other emerging economies. To build up this knowledge, IBM will empower the
employees in their consulting or support roles, allowing them achieve the highest potential in the co-
creation of the service, and therefore generating utmost value to its clients in the targeted regions.
Stefanini well forged relationship with stakeholders within its ecosystem has given empower it to grow at a
very fast page. The company’s outsourcing services have been extensively used by Latin America’s
companies, giving Stefanini the opportunity to create long term relationships with their clients. This large
client base includes small-to-midsize local and regional companies, in different industries and markets. IBM
will be able to connect this client base with global partners, and give them access to high-end technology.
In terms of innovation, Stefanini’s constant investment in new technology gave it an edge in the region in
aspects like mobilization of technologies and business intelligence solutions for its clients. Stefanini IT
Solutions and IBM have been collaborating for a while in supplying best custom technologies for different
clients in the market. IBM will effectively adapt its current developments, to different business requirements,
being able to combine the right people, technology and knowledge.
Stefanini’s revenue increased by a factor of three from 2009 to 2012, and its financial stability and zero net
debt are proof of the company’s potential. Also, its current talent retention rate of 89% according to internal
calculations is expected to improve after their empowerment in their roles.
Service thinking analysis of Stefanini IT Solutions C
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ion Q: How do we empower stakeholders to consolidate the business in a region?
Phrase from PR: IBM will empower the employees in their consulting or support roles, allowing them achieve the highest potential in the co-creation of the service.
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Q:What is the continuous improvement discipline?
Q: How fast can it grow?
Q: How is there a shift in the way we connect knowledge, people and technology?
Q: What is the best component to acquire in order to consolidate the business in a region?
Phrase from PR: IBM will be able to connect this client base with global partners, and give them access to high-end technology.
Phrase from PR: This acquisition will allow IBM to consolidate its business in emerging countries, especially in Latin America, leveraging on Stefanini’s talented local workforce, new connections with different stakeholders, and proven ability of revenue growth.
Phrase from PR: Operating in 28 countries and 67 cities around the world in all continents, Stefaninihas a talented work force of over 13K employees
Phrase from PR: IBM will effectively adapt its current developments, to different business requirements, being able to combine the right people, technology and knowledge.
Q: What are the new KPI's implemented in the organization?
Phrase from PR: Stefanini’s revenue increased by a factor of three from 2009 to 2012 […], its current talent retention rate of 89% is expected to improve after their empowerment in their roles.
Collaborative growth
Global partners
Regional focus
Impact:
Connection
Shared Tech
Revenue
IBM Global 2000-Service Innovation Project July 30, 2013 Slide 9 of 20
IBM Builds Strategic relationships in Latin America to Promote Social Business
through Quasar Ventures and Restorando.com
SAO PAULO – 25 January 2015: Today IBM (NYSE: IBM) announced an agreement with Quasar
Ventures, a capital firm focused on creating successful tech companies in the region. The partnership is
aligned with IBM’s goal to build strategic relationships with this type of capital firms and their portfolio
companies.
IBM engages with Quasar to find growing and impactful technologies in Latin America to serve customers
in the region. IBM leverages Quasar Ventures’ business knowledge and connections by providing access to
technical expertise and international network of partners, and in this way creating an ecosystem that
promotes innovation.
IBM also will support the firm’s major current investment, Restorando.com to improve social applications in
its business. Restorando.com is a startup that enables restaurants to have different promotion channels to
fill available tables and increase revenue, and at the same time makes it easy and efficient for customers to
make reservations online in the biggest cities of Latin America, improving in that way the life of their
citizens.
Restorando.com operates as a bridge that communicates customers and restaurants, improving their
relationship and consequently adding value to the service. Using Restorando.com social application,
customers reserve tables at suggested restaurants, and also have the opportunity to share their review and
comments about the service they received in the visit to friends or to other interested customers.
The restaurants in return have access to more and more traceable data about their service, which helps
them to be more accurate when measuring their KPI’s. And also, these local businesses have access to
business analytics, which allows them to measure different aspects like customer sentiment and main
influence in product selection.
Founded in 2010, Restorando.com reached more than 1,000 restaurants in Brazil, Chile and Argentina in
18 months. Now it is also in present Colombia, Peru and Venezuela is the leading online reservation
platform in the region with over 2,000,000 subscribed customers. Supported by IBM’s social media
platform, Ristorando.com expects to be able to reach 1,000 more restaurants, and increase its presence in
social media doubling the customer base.
Service thinking analysis of Restorando.comC
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ion Q: How are customers empowered and engaged?
Phrase from PR: […] customers reserve tables at suggested restaurants, and also have the opportunity to share their review and comments about the service they received.
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Q: What is the continuous improvement discipline?
Q: How is there a shift in information shared in the system?
Q: What can be outsource to improve our service performance?
Phrase from PR: Restorando.com operates as a bridge that communicates customers and restaurants, improving their relationship and consequently adding value to the service.
Phrase from PR: Restorando.com is a startup that enables restaurants to have different promotion channels to fill available tables and increase revenue, and at the same time makes it easy and efficient for customers to make reservations online
Phrase from PR: Restorando.com reached more than 1,000 restaurants in Brazil, Chile and Argentina in 18 months. […] present Colombia, Peru and Venezuela is the leading online reservation platform in the region with over 2,000,000 subscribed customers.
Phrase from PR: The restaurants in return have access to more and more traceable data about their service, which helps them to be more accurate when measuring their KPI’s
Q: What are the new KPI’s implemented in the system?
Phrase from PR: […] these local businesses have access to business analytics, which allows them to measure different aspects like customer sentiment and main influence in product selection.
New customers
Value Added
Revenue increase
Impact:
Regional Focus
Revenue
Innovation
Q: How fast can it grow?
Service thinking principles are evident in IBM partnerships
Starbucks Corporation
• Company size: GIE Forbes2000, presentNorth America, Latin America, Asia, Middle East, Europe
• Revenue: $13.3B YE2012• Company Website:
http://www.starbucks.com/• Starbucks Connects its Global
Partners and Improves Efficiency with IBM Social Business Software
• Impact: Revenue increase: $4m Profit increase: $ 73m Brand image
improvement Working environment
• Company size: Mainly Regional: Offices in several countries, but over 70% of workforce located in South America
• Revenue: $ 913m YE2012• Company Website:
http://www.stefanini.com/• IBM Consolidates its Business in
Emerging Markets through Acquisition of Stefanini IT Solutions
• Impact Revenue increase:$0.9m Profit increase: $ 0.54m Brand reputation in Latin
America Customer data base
• Company size: Venture Capital Latin America. Startup: Argentina, Brazil, Colombia
• Revenue: About $ 0.5 m /Yr• Company Website:
http://quasar-ventures.com/• IBM Builds Strategic relationships
in Latin America to Promote Social Business through Quasar Ventures and Restorando.com
• Impact: Restorando Revenue
increase: $ 0.5 m Brand stregthening in Latin
America
Stefanini IT SolutionsQuasar Ventures and
Restorando.com
References
• Starbucks idea: http://mystarbucksidea.force.com/
• FY12 Annual Report: www.starbucks.com
• MarketLine (2012) Company Profile: Starbucks Corporation. www.marketline.com
• Datamonitor (2011) Starbucks Corporation: Company Profile www.datamonitor.com
• Fast Company: The most Innovative Companies: http://www.prnewswire.com/news-releases/fast-company-names-stefanini-one-of-the-most-innovative-companies-in-brazil-140289283.html
• Stefanini: http://www.stefanini.com/EN/
• Interview to Marco Stefanini https://www.youtube.com/watch?v=lwRYTAkLq7w-
• Near shore Americas. Stefanini Expands Brand http://www.nearshoreamericas.com/brazils-stefanini-expand-united-states/
• Corporate Slideshare Stefanini http://www.slideshare.net/marcellelaranjeira/stefanini-corporate-presentation-10013905 -
• Pehub, Restorando seals 3.2 mFY1http://www.pehub.com/2012/02/22/restorando-seals-3-2m/
• Quasar Ventures website http://www.quasar-ventures.com/
• Restorando.com http://bogota.restorando.com.co/
• Revenue Estimates for Private companies http://ryanborn.net/revenue-estimates/
IBM Global 2000-Service Innovation Project July 30, 2013 Slide 17 of 20
Appendix