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Social Business: Opportunities for Business Transformation

Douglas Heintzman, Director of Strategy IBM Collaboration Solutions Business Innovation in Changing Times conference series 28 September 2011. Social Business: Opportunities for Business Transformation. A profound change is coming to business. Talent as a cloud

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Social Business: Opportunities for Business Transformation

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  1. Douglas Heintzman, Director of Strategy IBM Collaboration Solutions Business Innovation in Changing Times conference series 28 September 2011 Social Business: Opportunities for Business Transformation

  2. A profound change is coming to business • Talent as a cloud • Digital reputation and individual brands • Leadership by connections • Real-time teams • Collective intelligence

  3. A 5th wave of IT-enabled business transformation is emerging: Social Business Social Internet PCs Departmental Mainframe

  4. The Social Business opportunity is being driven by fundamental disruptions Analytics and Big Data Social Networks (There is currently 1.2 Zetabytes of electronic data in the world) (over 500 million users spend700 billion minutes per month on Facebook) Collective creativity and organizational transparency Deep insight into preferences and patterns Engaging everyone all the time Bringing together value networks efficiently Mobile Cloud delivery (297Million smartphones 20 million mobile tablets sold in 2010) (Market will grow from $46 billion in 2009 to $210.3 billion in 2015)

  5. Social Business is the convergence of 3 major technologies Social Networking Engagement and Social behavior Transforming business processes Social Analytics Social Content Standout organizations are57% more likely to allow their people to use social and collaborative tools. – IBM CHRO Study 2010 Deriving insight from social patterns 95%of standout organizations will focus more on “getting closer to the customer” over the next 5 years. – IBM CEO Study 2010

  6. 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

  7. Socially enabling business processes A Social Business Harvests insights from networks of people to create value A Traditional Business Knowledge silos, ineffectiveness Builds trusted relationships and brand advocacy Human Resources Push marketing, control Marketing / Customer Experience Sell effectively, grow the business Unclear view of customer, limited avenues Sales Shares insights to generate breakthrough ideas and speeds time to market Linear, unclear view of needs Product & Service Innovation Strengthen controls, increase transparency, reduce exposure Governance, Risk & Compliance Opaque, uncontrolled

  8. A Social Business Socially business examples Connecting 20,000+ consultants to staff new projects faster and realize startup cost savings Human Resources Promoting brand identify to turn customers into advocates and expand your reach Marketing Connecting employees and customers socially to find answers for customers in real time Customer Experience Harnessing social networks that are accelerating new product development from 12 months to 4 months Product & Service Innovation

  9. Mobile is a game changerInteractive access increases adoption 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 9 9

  10. Social Business Social Business disrupts the Business Solution Market • Sales pattern reuse • Efficient expertise leverage • Create customer advocates • Harnessing communities to support sales HCM CRM • Dynamic team assembly • Improved retention/ identification of leadership potential • Engagement, accountability, reputation • SFA • Social CRM • Web Experiences ERP PLM • Coordination across a business process • Continuous process optimization • Collaborative product creation • Transparency across engineering teams • Error reduction • Accelerated ideation SCM • Flexible relationships • Process coordiation across a supply chain • Business application vendors are integrating social features into their applications and the dividing lines between transactional tools and social environments are fading. Gartner, Oct 2010 G00207424

  11. 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

  12. 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..

  13. 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

  14. 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.

  15. 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

  16. Lessons learn form an early adopter: Leveraging the social network • 12M IMs per day • 2X every 3 years • 209,328 activities (56,000 discrete visitors per month) • 635,000 Advanced Profiles • 340,000 discrete users of Connections (>60% of employee population) • 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 16

  17. Lessons learn form an early adopter: Optimizing a workforce • 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 17

  18. Lessons learn form an early adopter Be willing to experiment Gain business sponsorship Focus on business outcomes Invest in adoption Manage actively Collect metrics

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