The Business Value of Web 2.0
- 1. (The Business Value of Web 2.0) (Brent Lello) (Advanced Collaboration Software Sales Specialist – IBM Lotus A/NZ) IBM Insight Forum 09 Make change work for you ®
- 2. 2 IBM Insight Forum 09 Make change work for you ®
- 3. IBM Lotus Software on Level of Interactio Development of th Web D l t f the W b Web 2.0 Web 1.0 Connected Individual Time 8/27/2009 Enterprise 2.0 | Ralph Demuth
- 4. IBM Lotus Software From Individual Consumers to Connected Contributors Source: Dion Hinchcliffe’s Web 2.0 Blog 8/27/2009 Enterprise 2.0 | Ralph Demuth
- 5. 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 Web 1.0 Web 2.0 Web 2.0 is about … Britannica Online Wikipedia PLATFORM PEOPLE Yahoo! Del.icio.us Web as a delivery platform Social computing Access services online Connect to expertise Home pages Blogs MapQuest Google Maps Ofoto Flickr GeoCities MySpace/Facebook y p APPLICATION DEVELOPMENT Change the economics of Napster Pandora/Rhapsody application development 5
- 6. IBM Lotus Software With whom do you want to work? h d tt k? ble Affab Lovable Fool Lovable Star Jerk Incompetent Jerk Competent Jerk Fool Competent Source: Competent Jerks, Lovable Fools, and the Formation of Social Networks – Casciaro, Lobo, Harvard Business Review 2005
- 7. IBM Lotus Software Web 2 0 Social ft W b 2.0 S i l software helps you find the ‘Lovable Stars’ h l fi d th ‘L bl St ’ ble Affab Lovable Fool Lovable Star Jerk Incompetent Jerk Competent Jerk Fool Competent Source: Competent Jerks, Lovable Fools, and the Formation of Social Networks – Casciaro, Lobo, Harvard Business Review 2005
- 8. IBM Lotus Software Social t S i l networking and collaboration ki d ll b ti Critical Success Seekers Contributors Factors I need someone I am someone Awareness How do I know who is out How can I become more known? working there? Social Competence (Trust) p ( ) Is this person competent? p p How can I advertise my y Netw expertise? Benevolence (Trust) Will this person help me? How can I develop my orative reputation as a trusted partner? ols Too Collabo Mechanism Do we have a method to collaborate? Weave social networking into existing collaboration tools to naturally discover people and their knowledge 8
- 9. 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 p y g that enterprise spending on Web 2.0 is expected to grow 34% from US$764 million in 2008 33% 32% to US$4.6 billion in 2013.1 29% 28% 27% 24% 24% 23% Gartner ranks Web 2.0 as 21% 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 use mashups se mash ps Blogs RSS Wikis Podcasts Social networking within two years.3 2007 2008 Source: McKinsey Quarterly Survey on Web 2.0, July 2008. 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. 9
- 10. IBM Lotus Software Why Wh use S i l Software in Your Business Social S ft i Y B i Be Change-Ready Change Ready Empower people to share their knowledge and expertise Enable people to discover information quickly and easily Find and connect with the right experts fast Integrate Globally Work together virtually without flying in for face to face meetings Connect everyone to your customers and partners Innovate your p oducts a d se ces, e te g o ate you products and services, entering Lead in Innovation new markets and gaining new potential customers Anticipate change faster than your competition 10
- 11. IBM Lotus Software Lotus C L t Connections – I t ti Integrated Social Software Services t d S i l S ft S i 11
- 12. IBM Lotus Software Common P i P i t C Pain Points Inability to innovate quickly enough around new products or services causing reduced revenue growth. Workforce 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
- 13. IBM Lotus Software Business B B i Benefits of Lotus Connections fit f L t C ti Improves the visibility of peoples expertise, ideas, and content. p y p p p Improves 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 growth growth. Improves the value of key experts across the organisation. Provides the Web 2.0 tools that ‘net-gen’ workers expect to be productive. productive 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’ organisation’s customers 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 y Empowers organisations to pro-actively adapt to marketplace trends and customer expectations by quickly 13
- 14. IBM Lotus Software What th A l t S Wh t 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 enterprise 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 a Lynch cio com Unlike SharePoint, document management system and then recently added Web 2.0 features, Connections is strictly a social software offering.” 14
- 15. Lotus Connections @ Centrelink
- 16. 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 Tagging 20 Services (ETS), which: Allows users to tag pages in the IBM intranet Is integrated with enterprise search to significantly reduce search time ROI Improved growth through I d th th h Increased empowerment I d t innovation Improved efficiency Cost avoidance of key resources Broadened the collective Cut search time by an Avoided US$2.4 million Enabled better use of key intelligence to drive average of 12 seconds in costs through the experts and content o at o innovation reusability of the ETS ac oss the organization across t e o ga at o With 286,584 search widget Uncovered information visits per week, saved with an estimated value 955 hours of US$500,000 per At US$100 per hour, p year 40 hours per week and 48 weeks per year, gained US$4.6 million in productivity 16
- 17. IBM Lotus Software IBM social networking at work at Cardiff University Improves research agenda with IBM Lotus Connections software Business challenge Improve overall employee productivity by allowing faculty to tap into the vast amount of knowledge and skills across the university Solution An 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 institution Allows users to locate information quickly, interact with people in realtime and advance research projects through collaboration Benefits Increased collaboration across previously isolated schools and faculties Improved the university experience of faculty and students Enhanced teaching methods and materials Increased efficiencies in research projects and grant management 17
- 18. IBM Lotus Software Lotus Connections @ Imerys, USA Imerys International Supplier of minerals, 250 locations in 45 countries Business Challenge: 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 business Solution Initial solution rolled out to Environment Health & Safety Division EHS 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 globe Better informed staff ensures better informed and happier customers 18
- 19. IBM Lotus Software Enterprise Mashups - p p Leverage Existing Assets to Address Situational Needs Business Challenges Lack of agility and inability to quickly Strategic, Strategic IT built innovate– IT can’t respond fast enough applications to business requirements sers per application Spreadsheet “apps” hard to manage, share, share keep current Silo-ed, outdated, inaccessible data a IT Challenges Ch ll IT is backlogged and suffering from too many business requests Underground or “shadow” IT shadow Numb of us Enterprise Mashups Security violations Loss of information ber Long Tail - situational Number of applications 19
- 20. IBM Lotus Software IBM Mashup Center at work at Boeing Purpose: enable U.S. Federal Aviation Administration ( p (FAA) officials to q ) quickly y identify the nearest airport that can safely handle an incoming aircraft for emergency response “As an established innovator Boeing believes in As innovator, 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 ” time, condition. — Paul Comitz, Boeing, IBM press release, June 5, 2008 Created by IBM and Boeing to demonstrate next-generation aviation capabilities Draws from existing data and systems to enable officials to react to unexpected Boeing Air Traffic Management events Built within three weeks and delivered to the FAA, the U.S. Department of Defense and the U.S. Department of Homeland Security 20
- 21. 21 Thank Th k you IBM Insight Forum 09 Make change work for you ®