Smarter Planet V3
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This document discusses social business and how companies can use social tools and analytics to improve business outcomes. It notes that mobile use and social media are rising, increasing customer expectations. To meet these expectations, companies need to focus on customers and use social business approaches like social networks, mobile apps, analytics and collaboration tools to deepen customer relationships, increase revenue, and improve satisfaction, cost efficiency and agility. The document provides examples of how companies like IBM, CEMEX and the Australian Bureau of Statistics have successfully adopted social business strategies.
Smarter Planet V3
- 1. Social Business Mike Handes IBM Collaboration Solutions @mikehandes mhandes@au1.ibm.com
- 2. 3 big ideas to build one smarter planet Instrument the world's systems Smartphone shipments will outpace PCs by 2012 Interconnect them Social networking accounts for 22% of all online time Make them intelligent Social data analytics opportunity will grow to 1 Zettabyte by 2011 “Watson is the latest example of IBM's 100-year history of scientific discovery.” - Sam Palmisano, Chairman and CEO of IBM
- 3. Do we need to Work Smarter on a Smarter Planet? Every week, 42% of people use the wrong information to make decisions Employees spend 25% of their time just looking for information 91% of CEOs say they need to restructure the way their organizations work Every week businesses waste 5.3 hours due to inefficient processes Business imperatives for Smart Work 3
- 4. CHROs highlight three key workforce areas as significant opportunities for improvement 9 Relative effectiveness Sourcing and 8 recruiting from Managing outside the Retaining valued talent labor costs organization within the organization 7 Evaluating Enhancing workforce 6 workforce productivity performance 5 4 Rapidly developing Efficiently allocating the workforce skills and workforce capabilities 3 2 Developing future Fostering collaboration leaders and knowledge 1 sharing 1 2 3 4 5 6 7 8 9 Relative future importance 707 HR executive interviews 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?) 4
- 5. credit @davegray @dachisgroup http://www.flickr.com/photos/davegray/sets/72157626546771488/with/5640776283/ 5
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- 10. Social Business MARKET ● 74% companies are integrating Web 2.0 with customer interaction1 ● 75% companies are integrating Web 2.0 into employee day-to-day activities1 ● 71% companies are integrating Web 2.0 with partner/supplier interaction1 ● 69% companies report that Web 2.0 tools have delivered measurable business benefits1 ● 38% estimated growth for the Social Business software market through 20142 ● $2B estimated Social Business software market size in 20143 ● IBM identified as the market share leader in Social Platforms in 20104 “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 1 Source: McKinsey Global Survey; “How companies are benefiting from Web 2.0” 2 Source: IDC, Predictions 2011: Welcome to the Mainstream 3 Source: IDC, “Determining the Value of Social Business ROI: Myths, Facts, and Potentially High Returns” 4 Source: IDC, Worldwide Social Software Software MarketShare by Vendor 5 Source: Gartner, “Study encourages businesses to embrace social networking”; Nikos Drakos
- 11. A Business
- 12. A SOCIAL Business Engaged Agile Transparent
- 13. Measurable Business Benefits of Web 2.0 68% - Increasing speed of access to knowledge by avg 30% 54% - Reduce communications costs by avg 20% 35% - Increasing employee satisfaction by avg 20% 43% - Increasing customer satisfaction by avg 20% 38% - Reduced marketing costs by avg 20% Source: McKinsey Global Survey on Web 2.0 Adoption
- 14. Social Business DEMAND Business Demands ● Drives advocacy and more sales through trusted Business As Usual relationships Deepen relationships Customer ● 'Push' marketing via with customers Experience traditional channels Marketing ● Control over brand image ● Speed time to market and and brand communication gain market share with break- through ideas and products Generate new ideas faster Product ● Invest in R&D Customer ● Generate new ideas ● Save money by reaching out Development Experience internally to professional networks to ● Test ideas in market respond faster to business Marketing Processes decisions and opportunities Enable a more effective workforce Operations, ● Email and phone based communication Human ● Knowledge kept in silos Resources
- 15. Social Business EXPERIENCES Optimize your Deepen client workforce relationships Exceptional Exceptional Experience Experience IBM Social Business Framework
- 16. Social Business DEPLOYMENT MODELS Exceptional Exceptional On Premises Experience Experience Hybrid Public Private Cloud Cloud IBM Social Business Framework
- 17. Exceptional Experience Standout organizations are 57% more likely to allow their people to use social and collaborative tools.
- 18. For CEMEX, becoming a social business means developing a culture of knowledge and insight-sharing Goal: to shift culture Project Shift towards more open Driving a measurable social transformation... collaboration across a global organization • 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 Campaign: Project Shift - an internal social “It can make a big company look like a small company" network – Gilberto Garcia, Director of Innovation Smarter Innovation
- 19. ● 3200 staff and 700 field data collectors – economic, business, environmental, population/demographic statistical outputs ● 9 offices located in all capital cities across Australia Challenges “With IBM Connections ABS can use business- grade social software, straight out of the box.” ● Recruiting quality staff Dale Chatwin, Director, Knowledge Management Initiative, ABS. ● Virtual teams are a reality ● Resource Constraints ● Increasing demands Knowledge fragmented Benefits Information hard to find ● Online communities formed ● Security and confidentiality External collaboration around interests, technologies requirements ● Best practices now emerging from these communities Solution – IBM ● Needed to complement our existing ● Speeding the induction process Workgroup Database and not ● New staff familiar with social tools replace ● Induction focus on the context, “why” ● Couple the new social computing rather than “how” features to the Workgroup Database ● Senior manages communicating with dispersed teams via Blogs
- 20. IBM – A Social Business 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 Suggested Reading: IDC Whitepaper - "Becoming a Social Business: The IBM Story"; January 2011 ftp://aix.software.ibm.com/ftp/demos/226706-IDC-Whitepaper-Becoming-a-Social-Business-IBM-Story.pdf 1) ROE Blogs = (Number of Comments + Number of Recommendations) / Number of Blogs 3) ROE Files = Number of downloads / Number of uploads 2) ROE Profiles (Yearly) = Number of searches / Number of profiles 4) ROE Wikis = Number of page views / number of pages
- 21. Exceptional Experience Contextual Personalised Integrated Mobile One Click Secure Discoverable Open 21
- 22. Exceptional Experience 2010 IBM Global CEO Study 2010 Gartner CEO and Senior Business Executive Survey* The top three business priorities 95% of standout for 2010 are: organizations will focus more on ● Retaining and enhancing “getting closer to existing customers the customer” over ● Maintaining competitive the next 5 years. 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 *Source = Gartner Research. Mark Raskino, Jorge Lopez. March 29, 2010 22
- 23. Exceptional Web Experiences Deliver Better Business Outcomes Business advantage Technology advantage Conversation spectrum Growth Customer Satisfaction Efficiency ● HSBC realized a 35% improvement ● Lufthansa handles 10,000 people ● Miami-Dade County saved $1 in marketing campaign revenue making travel requests every second million per year in labor costs ● Bharti-Airtel grew subscribers from ● LA County offers a consistent online ● US Army saves $1.3 Billion per year 6 million to 110 million in six years experience across 38 departments supporting 1.4 million Army while providing quality services and for 10.4 million constituents personnel support online ● Boston Medical increased referrals ● Harley-Davidson improved IT ● Lufthansa supports 16,000 by 30% and reduced no-show rates efficiency by 80% customer check-ins/day. In 2008, by 10% 3.7 million online flights were ● Wimbledon efficiently scaled its booked, growing by 37% in 2009 ● Woodmen of the World reduced call website to serve 12.3 million people center support calls by 30% in 2009, 23% more than in 2008 23
- 24. The outcomes – in only 4 months ● 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 24
- 25. Rising Customer Expectations Summary Mobile Social Explosion Everywhere Increase Revenue Sa Cus t os tis to C fa me e ct r uc Focus on the io ed n Internet R Customer Warp Speed Social Business Delivers Better Business Outcomes 25
- 26. Rising Customer Expectations Summary Mobile Social Explosion Everywhere Increase Revenue Sa Cus t os tis to C fa me e ct r uc Focus on the io ed n Internet R Customer Warp Speed Social Business Delivers Better Business Outcomes 26
- 27. EXPECT & CELEBRATE People are amazing the UNEXPECTED
- 28. Thanks! Mike Handes 601 Pacific Highway A/NZ Lead St Leonards NSW 2065 Collaboration Solutions Tel: +61 402 090 923 mhandes@au1.ibm.com 28