(The Business Value of Web 2.0)(Brent Lello)(Advanced Collaboration Software Sales Specialist – IBM Lotus A/NZ)

Make change work for youIBM Insight Forum 09®

2

Make change work for youIBM Insight Forum 09®

IBM Lotus Software

D l t f th W bDevelopment of the Webon

Inte

ract

io

Web 2.0

Leve

l of

Web 1.0

Connected

Individual

8/27/2009 Enterprise 2.0 | Ralph Demuth

Time

IBM Lotus Software

From Individual Consumers to Connected Contributors

8/27/2009 Enterprise 2.0 | Ralph Demuth

Source:Dion Hinchcliffe’s Web 2.0 Blog

IBM Lotus Software

What is Web 2.0?“Web 2.0 is a set of economic, social, and technology trends that collectively form the basis for the next generation of the Internet … characterized by user participation, openness, and network effects.”—O’Reilly Radar

WikipediaWikipediaBritannica OnlineBritannica Online

Web 2.0Web 2.0Web 1.0Web 1.0 Web 2.0 is about …

BlogsBlogsHome pagesHome pages

Del.icio.usDel.icio.usYahoo!Yahoo!

WikipediaWikipediaBritannica OnlineBritannica Online

PEOPLESocial computingConnect to expertise

PLATFORMWeb as a delivery platform

Access services online

MySpace/FacebookMySpace/FacebookGeoCitiesGeoCities

FlickrFlickrOfotoOfoto

Google MapsGoogle MapsMapQuestMapQuest

APPLICATION DEVELOPMENT

Pandora/RhapsodyPandora/RhapsodyNapsterNapster

y py pGeoCitiesGeoCities APPLICATION DEVELOPMENTChange the economics of application development

5

IBM Lotus Software

With h d t t k?With whom do you want to work?

ble

Lovable Fool Lovable Star

Aff

ab

Incompetent Jerk Competent JerkJerk

CompetentFoolSource: Competent Jerks, Lovable Fools, and the Formation of Social Networks – Casciaro, Lobo, Harvard Business Review 2005

IBM Lotus Software

W b 2 0 S i l ft h l fi d th ‘L bl St ’Web 2.0 Social software helps you find the ‘Lovable Stars’

ble

Lovable Fool Lovable Star

Aff

ab

Incompetent Jerk Competent JerkJerk

CompetentFoolSource: Competent Jerks, Lovable Fools, and the Formation of Social Networks – Casciaro, Lobo, Harvard Business Review 2005

IBM Lotus Software

S i l t ki d ll b tiSocial networking and collaboration

Critical Success Factors

SeekersI need someone

ContributorsI am someoneFactors I need someone I am someone

Awareness How do I know who is out there?

How can I become more known?

Competence (Trust) Is this person competent? How can I advertise my ocia

lw

orki

ng

p ( ) p p yexpertise?

Benevolence (Trust) Will this person help me? How can I develop my reputation as a trusted partner?

SN

etw

orat

ive

ols

Mechanism Do we have a method to collaborate?

Colla

bo Too

Weave social networking into existing collaboration tools to naturally discover people and their knowledge

8

IBM Lotus Software

Why should you care about Web 2.0? (continued)

Companies are investing in Web 2.0 to increase their competitive advantage

Web 2.0 adoption trends Forrester projects significant adoption of Web 2.0, saying

27%

34% 33% 32%29% 28%

p y gthat enterprise spending on Web 2.0 is expected to grow from US$764 million in 2008 to US$4.6 billion in 2013.1

21%24% 24% 23%

27%Gartner ranks Web 2.0 as a transformational trend in the short term—less than two years.2

Twenty-two percent of organizations surveyed are using mashups now. An additional 42 percent plan to se mash ps

Source: McKinsey Quarterly Survey on Web 2.0, July 2008.

Blogs RSS Wikis Podcasts Social networking

2007 2008

plan to use mashups within two years.3

9

1. Forrester, Global Enterprise Web 2.0 Market Forecast: 2007 To 2013, G. Oliver Young, April 21, 2008.2 Gartner, Hype Cycle for Emerging Technologies, July 2008.3 Economist Intelligence Unit Survey, January 2007.

IBM Lotus Software

Wh S i l S ft i Y B iWhy use Social Software in Your Business

Empower people to share their knowledge Be Change-Readyand expertise

Enable people to discover information quickly and easily

Be Change Ready

Find and connect with the right experts fast

Work together virtually without flying in for face to face meetings

Integrate Globally

Connect everyone to your customers and partners

Innovate your products and services, entering o ate you p oducts a d se ces, e te gnew markets and gaining new potential customers

Anticipate change faster than your competition

Lead in Innovation

10

IBM Lotus Software

L t C ti I t t d S i l S ft S iLotus Connections – Integrated Social Software Services

11

IBM Lotus Software

C P i P i tCommon Pain Points

Inability to innovate quickly enough around new products or servicesInability to innovate quickly enough around new products or services causing reduced revenue growth.

Workforce demographics causing a loss of knowledge from retiringWorkforce demographics causing a loss of knowledge from retiring workforce and requiring recruitment and retention of a new generation of ‘net-gen’ youth into the business.

Globalisation, mergers and acquisitions, and outsourcing requiring people to be better connected with disperse colleagues.

Project–based environments driving a need for faster activity execution and more best practices reuse.p

12

IBM Lotus Software

B i B fit f L t C tiBusiness Benefits of Lotus Connections

Improves the visibility of peoples expertise, ideas, and content. p y p p pImproves operational efficiency by surfacing an organisation’s human capital within the context of a business application or process.Fosters idea sharing and innovation and empowers vibrant communities in order to drive growthcommunities in order to drive growth.Improves the value of key experts across the organisation.Provides the Web 2.0 tools that ‘net-gen’ workers expect to be productiveproductive.Improves the speed of execution of adhoc business activities through best practices capture and reuse.Improves an organisation’s insight into their customers’ or partners’Improves an organisation s insight into their customers or partners feedback and ideas.Provides a security-rich, protected platform that you control for sharing social data and intellectual property of employees and customers.p p y p yEmpowers organisations to pro-actively adapt to marketplace trends and customer expectations by quickly

13

IBM Lotus Software

Wh t th A l t SWhat the Analysts Say…

Rob Koplowitz, Forrester Research - “Connections is as good as any product made by a vendor focused solely on social software for the enterprise It is also very good at integrating with enterprisethe enterprise. It is also very good at integrating with enterprise content."

Jonathan Edwards, Yankee Group - “IBM's recent partnership with Research in Motion (RIM) to put a mobile version of Connections on BlackBerry placed the vendor not only ahead of Microsoft, but enterprise 2.0 vendors as well”

CG Lynch cio com “Unlike SharePoint which started off as aCG Lynch, cio.com - Unlike SharePoint, which started off as a document management system and then recently added Web 2.0 features, Connections is strictly a social software offering.”

14

Lotus Connections @ Centrelink

IBM Lotus Software

Why should you care about Web 2.0?You can measure the ROI of Web 2.0 across a variety of sources. Here’s an example of how IBM benefited from Web 2 0 with its Enterprise Taggingexample of how IBM benefited from Web 2.0 with its Enterprise Tagging Services (ETS), which:

Allows users to tag pages in the IBM intranetIs integrated with enterprise search to significantly reduce search timeIs integrated with enterprise search to significantly reduce search time

ROI

I d th th h I d tImproved growth through innovation

Broadened the collective intelligence to drive innovation

Improved efficiency

Cut search time by an average of 12 seconds

Cost avoidance

Avoided US$2.4 millionin costs through the reusability of the ETS

Increased empowerment of key resources

Enabled better use of key experts and content across the organizationo at o

With 286,584 searchvisits per week, saved 955 hours

At US$100 per hour,

reusability of the ETS widget

ac oss t e o ga at o

Uncovered information with an estimated value of US$500,000 per yearp

40 hours per week and 48 weeks per year, gained US$4.6 millionin productivity

16

IBM Lotus Software

IBM social networking at work at Cardiff University

Improves research agenda with IBM Lotus Connections software

Business challengeImprove overall employee productivity by allowing faculty to tap into the vast amount of knowledge and skills across the universitythe vast amount of knowledge and skills across the university

SolutionAn enterprise-wide directory service based on IBM Lotus Connections software that:

Enables researchers and staff to search for skills, projects, teams and knowledge throughout the institutionAllows users to locate information quickly, interact with people in realtime and advance research projects through collaborationcollaboration

BenefitsIncreased collaboration across previously isolated schools and facultiesImproved the university experience of faculty and studentsImproved the university experience of faculty and studentsEnhanced teaching methods and materialsIncreased efficiencies in research projects and grant management

17

IBM Lotus Software

Lotus Connections @ Imerys USALotus Connections @ Imerys, USA

Business Challenge:International Supplier of minerals, 250 locations in 45 countries

g• Diverse customer base requiring increasing levels of

service• R&D drives value for customers, so need to Connect

R&D more effectively to all lines of businessR&D more effectively to all lines of businessSolution

Initial solution rolled out to Environment Health & Safety DivisionEHS uses Activities to respond to audits and incidents and track site visits, To Do lists, presentations, reports and picture images for 1 week audits.Future roll-out includes R&D function across the enterprise

Benefits:Easier sharing of content and collaboration across different lines of business across the globedifferent lines of business across the globeBetter informed staff ensures better informed and happier customers

18

IBM Lotus Software

Enterprise Mashups -p pLeverage Existing Assets to Address Situational Needs

Strategic IT built Lack of agility and inability to quickly Business Challenges

ion

Strategic, IT built applications

innovate– IT can’t respond fast enough to business requirements

Spreadsheet “apps” hard to manage, share keep current

appl

icat share, keep current

Silo-ed, outdated, inaccessible data

IT Ch ll

sers

per

a

IT is backlogged and suffering from too many business requests

Underground or “shadow” IT

IT Challenges

ber o

f us Enterprise Mashups Underground or shadow IT

Security violationsLoss of information

Num

b

Long Tail - situational

19

Number of applications

IBM Lotus Software

IBM Mashup Center at work at BoeingPurpose: enable U.S. Federal Aviation Administration (FAA) officials to quickly p ( ) q yidentify the nearest airport that can safely handle an incoming aircraft for emergency response

“As an established innovator Boeing believes inAs an established innovator, Boeing believes in the power of Web 2.0 and embraces it not only for collaborative work, but also for the heavy lifting of enterprise planning and execution. IBM Mashup Center is playing a key role in our visionary approach to strategic asset management. It's critical to know where your major assets are and how to use them at any given time situation or condition ”at any given time, situation or condition.

— Paul Comitz, Boeing, IBM press release, June 5, 2008

Boeing Air Traffic Management

Created by IBM and Boeing to demonstrate next-generation aviation capabilities Draws from existing data and systems to enable officials to react to unexpected events

20

Built within three weeks and delivered to the FAA, the U.S. Department of Defense and the U.S. Department of Homeland Security

21

Th kThank you

IBM Insight Forum 09®

Make change work for you