IBM's Social Business Strategy © 2012 IBM Corporation

IBM's Social Business Strategy
© 2012 IBM Corporation
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© 2012 IBM Corporation
A Social Business…
… is about people;
networks of people
… connects people
across boundaries
Engaging
Transparent
Nimble
… depends on trust built through
meaningful engagement
… achieves amazing
results
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April 19, 2012
Accelerating Social Business
© 2011 IBM Corporation
What is Social Business?
Use of collaboration/social
Engaging
networking to enable global teams
To work more effectively
Outperformers
44%
Transparent
57%
MORE
Underperformers
28%
Nimble
Source: IBM CHRO Study, 2010
Note: Outperformers are derived from an analysis of the compound annual growth rate (CAGR) for 2003-2008
EBITDA within industries. Outperformers represent companies above the median: n=203
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April 19, 2012
Accelerating Social Business
© 2012 IBM Corporation
A profound change is coming to business







Talent as a cloud
Digital reputation and individual brands
Leadership by connections
Real-time teams
Collective intelligence
Engaged relationships
IT access anywhere
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© 2012 IBM Corporation
The
Third
Platformfor
forIndustry
Industry Growth
Third
Platform
Growth
Trillions
of “Things”
Social
Business
Big Data/
Analytics
Mobile
Mobile
Broadband Devices
& Apps
Cloud
Services
of Apps
Billions
of Users
Millions
2011
LAN/ ClientInternet Server
Hundreds of Millions
PC
of Users
Tens of Thousands
of Apps
Millions
of Users
Source: IDC, IDC Predictions 2012: Competing for 2020, December, 2011
inal
Term
Mainf
rane
1986
Thousands
of Apps
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© 2012 IBM Corporation
Social technology is changing the way we live
Vast amount of content
Social Networks
...to discover, rate and share while
increasingly online
1.2 Zetabytes of electronic data in the world
More than 7 billion pieces of content
shared each week on Facebook


Social networking accounts for 22% of all
online time

Mobile
Access anywhere and anytime
Smartphone shipments will outpace PCs
by 2012
Workers shift seamlessly between workpersonal roles 24x7 with smart
phones/tablets

Informed Consumer
Empowered consumers have changed
buyer-seller dynamic forever
155 million tweets via Twitter each day
75% don't believe ads

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© 2012 IBM Corporation
Social Business and Social Media deliver
complementary benefits to organizations
Social
Business





Accelerate business velocity
Collective creative potential
“Last Mile” of process
improvement
Improve decision making
Build cultures of innovation
Encompasses organization and
business processes
1
Social Media
as a new marketing
channel
Key Benefits



1
New customer interaction
Increased insight
New customer segments
Primarily marketing and PR
McKinsey Global Survey, What Marketers Say About Working Online, 11/11
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© 2012 IBM Corporation
The Social Business is changing the way we work
Customer Care and Insight
Product & Service Innovation



Social Media Monitoring/Analytics
11 out of top 50 brands are using social
media as a sustainable tool for marketing3

Workforce Optimization



Expertise Location, Talent clouds
89% recruit from social networks1 and 55% are
planning to invest more in social recruiting1
42% of LE's spend on informal learning2
Ideation, Jams
44% of F200 executives report using
crowd-sourcing to improve corporate
responsibility; 95% feel it has benefits4
Governance/Risk/Compliance


Clients seeking advice and solutions
51% of companies permit employees to
use social media for business purposes,
up from 19% in 20095
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1 Jobvite Social Recruiting Survey, 2011
2 Bersin & Associates, 2011, Corporate Spending on Social Learning
3 BrandZ most valuable brands, 2011, Kuliza analysis
4 Weber Shandwick/KRC Research Study, October 2010, 216 F200 executives
5 Robert Half Technology Group, 1400 CIOs, August 2011
© 2012 IBM Corporation
The opportunity to drive business value from IT is shifting from
process automation towards people-centric processes
Breakdown of IT enablement opportunities
Systems of
Record
Systems of
Engagement
*Balance to 100% is
non IT opportunity
Process Automation
Source: The Corporate Executive Board Company. IBM Strategy
Collaboration
Business
Intelligence/analytics
Direct customer Interface
| ©n=550
2012 IBM Corporation
Analysis based on APQC Process Classification Framework10v5.0;
lue
a
V
ss
e
n
i
Bus
Systems 23%+
of
CAGR
Engagement
Impacted
by Social
Business
23% CAGR
2.52cm
Demand for productivity and new markets drives
demand for Social Business transformation
Increasing demand to remove
barriers in systems of record
18-24%+
CAGR
-2 to -6% CAGR
Systems of
Record
CAGR Varies by
Process
1 to 2% CRM
-2 to -6% HR
Impact on Traditional Systems 2010 – 2020
SOURCE:
IBM Analysis
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© 2012 IBM Corporation
Social Business Market Opportunity will reach $99B by
2015; at 11% CAGR
$99B
Opportunity
($B)
$73B
2012
2015
Source:: IBM Analysis.
Note: Solutions are the highest growth areas (13% CAGR) driven by analytic capabilities
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© 2012 IBM Corporation
There are 3 layers of value of Social Business
Collaboration/Discovery (Driven by social media tools)
– Employee, partner, customer engagement
– Accelerated ideation
– Better and faster decision making
– Better collaboration
Insight (Driven by analytic tools)
– Attention management (filtering and prioritization)
– Pattern Insight
– Sentiment analysis
– Adoption and behavior metrics
Transformation (Driven my process integration)
– Process efficiency
– Process acceleration
– Accelerated engagement
– Business culture of innovation
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© 2012 IBM Corporation
IBM is bringing together a large number of
technologies and services to help organizations
optimize business processes
Unified Communications
Collaboration
Life Cycle
Management
Service
s
Social Media
Risk and compliance
Business
analytics
Text
analytics
Social
analytics
Enterprise content management
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© 2012 IBM Corporation
IBM's Social Business Framework enables powerful solutions
Process
Management
Engage
Social
Networking
Enable
Social
Content
Adopt
Discover
Envision
Reach
Transform
Act
Consulting
Services
Optimize
Social
Analytics
Software
Information
Management
Governance and
Lifecycle
Open Standards
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© 2012 IBM Corporation
Enabling Social Business:
People centric process integration
Smarter Commerce
Sterling Commerce, Core metrics, Unica,
Custmer Expereince suite,Cognos
Consumer Insight, IBM Case Manager
Community Insights
Cognos Consumer Insight +
Connections; Cognos BI +
Connections (planned)
Social enhanced
Governance
Tivoli directory, identity, and
security mgmt. products +
Connections + LotusLive
Social Application
Middleware
WebSphere products + Cognos +
Connections, etc.
Collaborative
Decisioning
Cognos 10 + Connections
Advanced Case
Management
FileNet + Connections
Case Manager + Sametime
Social Augmented BPM
Lombardi /
WebSphere Process Server +
Connections (planned)
Social Software
Engineering
Rational Jazz + Connections
+ Sametime
Social Information
Management
DB2 products + Cognos +
Connections, etc.
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© 2012 IBM Corporation
Expanding the developer communities supported
Expanded
Incumbent
Communities
Websphere/Portal
Notes/Domino
Sametime
Connections
Social
Opensource CMSs
REST Services
OpenSocial
Activity Streams
Business Card
Widgets
External
Services
IBM
Services
PHP/Ruby Node.is/.NET
Messaging
NoSQL Document Store
Mobile
External
Data
Other...
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© 2012 IBM Corporation
Majority of “people-oriented” business processes will be
impacted by the application of a broad set of IBM Social
Business capabilities
■
Social Business drives a transformation of people-centric processes
─ Opportunity to monetize IBM capabilities at the business process level
─ Services-led
─ Key value levers are enabling systems of engagement and social intelligence
HCM
CRM
Sales pattern reuse
Efficient expertise leverage
Create customer advocates
Harnessing communities to support sales

PLM
Collaborative product creation
Transparency across engineering teams
Error reduction
Accelerated ideation

Dynamic team assembly
Improved retention/ identification of leadership
potential
Engagement, accountability, reputation


SCM
Flexible relationships
Process coordination across a supply chain


ERP


Coordination across a business process
Continuous process optimization
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© 2012 IBM Corporation
Customer Care Solution Example:
Financial services customer, gets personalized service, insights and a direct link to experts,
content and an external community that have similar financial goals
Social actions contacts and
content in context, with the
appropriate communication
channels
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© 2012 IBM Corporation
Sales Force Optimization Solution Example:
Integrate CRM , Collaboration, Content, and analytics in the context of the sales process.
Drive increased productivity, Less manual inspection. Data driven culture.
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© 2012 IBM Corporation
Highly Specialized Social Learning Example:
Pediatric Intensive Care Without Walls (PICU – WoW) – Improving children's health by
providing critical care training around the world
Knowledge sharing, training
and collaboration to
connect the experts with
clinicians on a as-needed
basis to specific areas of
the training for deeper
understanding
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© 2012 IBM Corporation
Human Capital Management Solution Example:
Optimizing the workforce by providing better insights into employee sentiment and a 'pulse'
of what's going on.
Discover (uncover) new insights
and take immediate action,
leveraging the right
communication channels
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© 2012 IBM Corporation
Social Business is an evolutionary foundation for
Systems of People
Systems of People (SoP)
Adaptive social platform

Interconnected with enterprise data and processes,
instrumented with knowledge capture, and
made intelligent through differentiating analytics

Social Business
Social Apps
Social Networks
ERP
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© 2012 IBM Corporation
An opportunity to create a new market is emerging
Adaptive social platforms instrumented with knowledge capture
Interconnected with enterprise data and processes
Made intelligent through differentiating analytics

...will transform business
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© 2012 IBM Corporation
Beginning … or continuing your Social Business Journey
Seek out customer experiences sessions at Lotusphere
See Social Business process integration on the expo floor
Get an idea of what is coming next at the Innovation Lab
Consider a Business Value Assessment for Social Business
Find out more at http://www.ibm.com/socialbusiness
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© 2012 IBM Corporation
Q&A
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IBM®
© 2012 IBM Corporation