© 2011 IBM Corporation

Social Business: Opportunities for Business Transformation

Douglas Heintzman, Director of StrategyIBM Collaboration SolutionsBusiness Innovation in Changing Times conference series 28 September 2011

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A profound change is coming to business

Talent as a cloud Digital reputation and individual brands Leadership by connections Real-time teams Collective intelligence

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A 5th wave of IT-enabled business transformation is emerging: Social Business

MainframeDepartmental

PCsInternet

Social

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The Social Business opportunity is being driven by fundamental disruptions

Social NetworksSocial Networks(over 500 million users spend700 billion (over 500 million users spend700 billion minutes per month on Facebook)minutes per month on Facebook)

Analytics and Big Analytics and Big DataData(There is currently 1.2 Zetabytes (There is currently 1.2 Zetabytes

of electronic data in the world)of electronic data in the world)

Cloud deliveryCloud delivery(Market will grow from $46 billion (Market will grow from $46 billion in 2009 to $210.3 billion in 2015)in 2009 to $210.3 billion in 2015)(297Million smartphones 20 million (297Million smartphones 20 million

mobile tablets sold in 2010)mobile tablets sold in 2010)

MobileMobile

Deep insight into preferences and patterns

Collective creativity and organizational transparency

Engaging everyone all the time

Bringing together value networks efficiently

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Social Content

Social Networking

Social Analytics

Social Business is the convergence of 3 major technologies

Transforming business processes

Deriving insight from social patterns

Standout organizations are 57% more likely to allow their people to use social and collaborative tools.– IBM CHRO Study 2010

95% of standout organizations will focus more on “getting closer to the customer” over the next 5 years.– IBM CEO Study 2010

Engagement and Social behavior

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Social Business strategic technologies

Reach:

Social networks

Identity systems

Communication channels

Engage:

Engagement applications

Social connectors

Content services

Discover:

Social analytics

Social monitoring

Optimization

Integrate:

Process management

Information integration

Governance, risk and security solutions

Solution lifecycle management

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Marketing / Customer Experience

Product & Service Innovation

Human Resources

A Traditional Business

A Social Business

Harvests insights from networks of people to create value

Builds trusted relationships and brand advocacy

Strengthen controls, increase transparency, reduce exposure

Opaque, uncontrolled

Knowledge silos,

ineffectiveness

Socially enabling business processes

Governance, Risk & Compliance

Sales

Push marketing, control

Unclear view of customer, limited avenues

Sell effectively, grow the business

Shares insights to generate breakthrough ideas and speeds time to market

Linear, unclear view of needs

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A Social Business

Connecting 20,000+ consultants to staff new projects faster and realize startup cost savings

Socially business examples

Connecting employees and customers socially to find answers for customers in real time

Harnessing social networks that are accelerating new product development from 12 months to 4 months

Marketing

Human Resources

Product & Service Innovation

Customer Experience

Promoting brand identify to turn customers into advocates and expand your reach

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100k mobile devices in use at IBM today

•65k Smartphones and Tablets•35k Blackberry

IBM CIO Office study:•Mobile access increases sales productivity by 11 hours per opportunity!

Estimated 3 year ROI of 195%

2015 goals:•500k users•80% of all enterprise capabilities accessible from mobile devices

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Mobile is a game changerInteractive access increases adoption

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Social Business disrupts the Business Solution Market

SCM

ERPPLM

HCMCRMDynamic team assemblyImproved retention/ identification of leadership potentialEngagement, accountability, reputation

Sales pattern reuseEfficient expertise leverageCreate customer advocatesHarnessing communities to support sales

Social Business

Collaborative product creationTransparency across engineering teamsError reductionAccelerated ideation

Flexible relationshipsProcess coordiation across a supply chain

Coordination across a business processContinuous process optimization

SFASocial CRMWeb Experiences

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Rethinking Opportunity Management: Improve Salesforce Automation with Social CRM and Deal Progression

Ability to interact directly with customers, discover opportunities, find skills and recommend next best actions

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Rethinking Sales Management: Improved sales management with actionable intelligence

Realtime data that is interactive and actionable, with a direct line to person responsible or owner. Track, monitor and initiate actions from one place, in one single source..

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Rethinking Workforce Optimization: Providing better insights into employee sentiment and a 'pulse' of what's going on. Improves reactive capacity and provides actionable intelligence for better decision making.

Discover (uncover) new insights and take immediate action, leveraging the right communication channels

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Rethinking Performance Management: Increase personal performance, team performance, and eminence by providing social reputation data to be added to user's content and profile; providing feedback on value of contributions

Team based decision making that is open and transparent, with real time evaluation of accomplishments, reputation and social influence.

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Rethinking Talent Management: Identifying all of the available talent, skills and factors that contribute to diverse, high performing teams. Support short term or long term projects.

By evaluating social relationships, reputation, eminence, accomplishments

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340,000 discrete users of Connections (>60% of employee population)

635,000 Advanced Profiles

63,262 communities (182,000 visitors per month)

18,203 active blogs (58,000 discrete visitors per month)43,646 Wikis (152,000 discrete visitors per month)404,576 Files (59,000 discrete visitors per month)>1,000,000 bookmarks> 3,000,000 tags

12M IMs per day2X every 3 years209,328 activities (56,000 discrete visitors per month)

Lessons learn form an early adopter: Leveraging the social network

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Lessons learn form an early adopter: Optimizing a workforce

Industry Space Community

Number of members as of June 8

Retail 3,232

Financial Markets 4,499

Healthcare & Life Sciences 2,715

Insurance 2,616

Chemical & Petroleum 2,738

Education 753

Telecommunications 4,123

Travel & Transportation 1,921

Banking 3,870

Energy & Utilities 3,223

Government 4,025

Consumer Products 3,766

Aerospace & Defense 1,941

Media & Entertainment 1,752

Electronics 4,195

Industrial Products 1,667

Automotive 2,381

17 Industry Spaces communities with a membership of approximately 50,000 Sellers, Consultants and Executives supporting these industries

13,743 experts enrolled in internal expertise locator

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Be willing to experiment

Gain business sponsorship

Invest in adoption

Focus on business outcomes

Manage actively

Collect metrics

Lessons learn form an early adopter