Transforming Processes with Social Business
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IBM Social Business TechTalk - 19 Nov 2013
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Transforming Processes with Social Business
- 1. November 19, 2013 The New Reality: Transforming Processes with Social Business © 2013 IBM Corporation
- 2. Winning with Social Focus on ROI • ROI is measurable: $900B – 1.3T/yr (McKinsey)1 • Highest ROI in areas with many decisions, interactions, audiences & risks Embed into strategic processes • It’s about the process; not the “S Word” • ROI Again: Process are measured 2 © 2013 IBM Corporation
- 3. Top 6 Patterns that accomplish both 3 © 2013 IBM Corporation
- 4. 4 © 2013 IBM Corporation
- 5. The Challenge reinventing customer engagement • 66% B2B & 52% B2C leave from 1 bad service experience1 • 67% never followed brand online2 • Only 12% say social “very effective” generating leads3 • Firms with 30+ pages have 7x leads of those <104 • Social Customers more loyal & spend 40% more5 5 © 2013 IBM Corporation
- 6. Social builds Relationships across touchpoints & channels Call Center Customer Service Online / Mobile Commerce Digital Marketing Sales Ongoing Relationships 6 © 2013 IBM Corporation
- 7. Social reinvents customer engagement • Build relationships that maintain community participation outside of transactions • Provide consistent experience across channels Lasting Relationships ROI •15% increase in Revenue1 •20% increase in effectiveness of marketing (out bound)1 •20% increase in customer satisfaction1 7 © 2013 IBM Corporation
- 8. Amadore • Engaged younger audience • 125% increase in new visitors • Reachable network of 14 million 8 1 “Evolution of the networked enterprise”, McKinsey & Co, March 2013 © 2013 IBM Corporation
- 9. Omron Business Challenge – Sales by country; clients spanned geography – 2 Divisions sell related solutions to same client Results – Transform sales to be: Pan Geographic “One Omron to Client” 9 © 2013 IBM Corporation
- 10. Example The challenge: Integrate “sales teams” while revenue is flat or falling due to customized products, complex deal structures and limited innovation Expertise Gaps • Salesperson has limited relationships Sales with Expertise Large Customer Collaboration gaps • Sales has limited channels to customer • Customers don’t trust company info Sales Information gaps • Many sources of information • CRM & product information not linked Other Large Customers 10 Other Experts Pain Points • Reduced sales and market share • High turnover in sales • Limited product innovation • Not leveraging sales expertise broadly © 2013 IBM Corporation
- 11. Example Embed expertise and assets into core sales process Embeds relevant resources to client opportunity from Verve social networks 11 Identifies people with relevant expertise to assist © 2013 IBM Corporation
- 12. Example The solution: Integrated networks based on need delivering higher revenue and brand sentiment Sales Embedded expertise access with CRM app Role based Sales experience Multiple channels to customer Large Customer Customer Connect across channels Private peer communities Other Large Customers 12 Sales Experience Solutions Salespeople with Expertise Salesperson Culture Incentives for those with expertise to assist Digital Customer Experience Associate Experience Other Experts Sales Experience • Portal integrating core CRM application • Embedded expertise identification • Contextually relevant sales, product and customer information • Integrated Instant messaging Digital Customer Experience • Rich external experience • Integrated social channels • Private peer communities • Social Analytics Associate Experience •Portal integrating core applications •Embedded expertise identification •Contextually relevant market, product and customer information •Integrated Instant messaging •Profile and experience © 2013 IBM Corporation
- 13. Example Measurable outcomes from connecting “roles” in the pattern Business impact from pattern Pattern Role interactions Sales Sales with Expertise Other Experts Conversion Rate Solution Enablers Sales Experience Revenue per Customer Cost of Sales Time to Sale HIGH HIGH MEDIUM HIGH MEDIUM MEDIUM Associate Experience Sales Sales Experience Large Customer Digital Customer Experience Large Customer Other Large Customers Digital Customer Experience Associate Experience Required inputs for ROI Calculation: 13 MEDIUM MEDIUM • Current conversion rate • Projected conversion rate with solution • Total # of annual transactions • Average transaction value HIGH • Current Revenue per Customer • Projected Revenue per customer • # of customers MEDIUM • Annual cost of sales • % improvement for the solution. • Average time for close deal • % improvement for the solution. © 2013 IBM Corporation
- 14. Call to Action: Reinventing Customer Engagement Social Business Solutions Target with social analytics Engage across channels to build trust IBM Employee Experience Suite Kenexa Talent Management Suite IBM Customer Experience Suite IBM Platform for Social Business IBM Connections IBM Notes & Domino Social Edition IBM Sametime IBM Social Analytics Suite IBM Enterprise Content Management IBM Websphere Portal IBM Web Content Manager Build targeted communities to engage market Leverage trust for sales, service, & more 14 © 2013 IBM Corporation
- 15. 15 © 2013 IBM Corporation
- 16. The Innovation Challenge • Only 25% are good at Generating & Converting Innovations2 “The Social Network is the New Production Line…” 3 …75% rely on social networks to vet new innovations for success4 16 © 2013 IBM Corporation
- 17. Social increases innovation • Breaks silos with social communities • Taps the wisdom of crowd with ideation for top challenges • Redefines leadership innovation with video, blogs, etc. ROI •20% Increase in successful innovations1 •20-25% increase in productivity2 17 © 2013 IBM Corporation
- 18. Ricoh • Transformed global product planning • Innovation by breaking down silos 20% Faster introduction of new products 18 © 2013 IBM Corporation
- 19. Call to Action: Innovation Social Business Solutions Scope innovation priorities & networks IBM Employee Experience Suite Kenexa Talent Management Suite IBM Customer Experience Suite IBM Platform for Social Business IBM Connections IBM Notes & Domino Social Edition IBM Sametime IBM Social Analytics Suite IBM Enterprise Content Management IBM Websphere Portal IBM Web Content Manager Crowdsourcing top issues Focus on commercializing innovations Accept that a majority of innovations will fail 19 © 2013 IBM Corporation
- 20. 20 © 2013 IBM Corporation
- 21. The Recruiting and Onboarding Challenge While 71% say employees are #1 source of economic value…1 • 90% do not have skills to be successful.2 • Declining engagement loses $25,000 profit / employee3 Social networking is the #1 way to attract talent 21 © 2013 IBM Corporation
- 22. Social Recruiting and Onboarding successes • Shows culture in specialized recruiting communities • Speeds onboarding linking to experts, wikis, and assets • Establishes reputation by social comments and sharing assets ROI •30% faster new hire time-to-value •20% increase in employee retention •30% faster access to experts 22 © 2013 IBM Corporation
- 23. Cabela’s • Attract best talent & promote new culture • Tailored internal & external messaging 5% increase in employee engagement in the first year 23 © 2013 IBM Corporation
- 24. Call to Action: Recruiting & Onboarding Social Business Solutions Define talent acquisition needs Engage candidates in company experience IBM Employee Experience Suite Kenexa Talent Management Suite IBM Customer Experience Suite IBM Platform for Social Business IBM Connections IBM Notes & Domino Social Edition IBM Sametime IBM Social Analytics Suite IBM Enterprise Content Management IBM Websphere Portal IBM Web Content Manager Leverage analytics to select the right talent Integrate new hire into relevant communities 24 © 2013 IBM Corporation
- 25. 25 © 2013 IBM Corporation
- 26. While M&A activity has been strong in 20131 … …50-83% fail to realize expected results2 …70% of failed M&As ignore people and culture3 A majority of M&A risks are “about people”4 •44% have leadership & communications gap5 •27% lose focus on the customer (sales & marketing)5 26 © 2013 IBM Corporation
- 27. Social increases M&A success • Leveraging single channel to engage organization on culture • Engages tippers in key competencies with social network analysis • Accelerates sales embedding expertise into core process ROI •Reduce the 50-83% M&A failure rate1 •30% Increase Speed to access Internal Experts2 27 © 2013 IBM Corporation
- 28. Large NA Bank: Speeding Pace of Integration Goals •Integrating the strengths of the two •Connecting bankers regardless of location and relationship “Bringing together our community in a way we haven't in the past” 28 © 2013 IBM Corporation
- 29. Social identifies where to focus integration efforts Map social networks highlighting integration opportunities 29 © 2013 IBM Corporation
- 30. Creating Common Culture Monitoring effectiveness of change programs 82% 30 Trust of CEO who communicates openly on Social © 2013 IBM Corporation
- 31. Call to Action: Mergers & Acquisition Social Business Solutions Engage on M&A vision at announcement Identify top resources from business case IBM Employee Experience Suite Kenexa Talent Management Suite IBM Customer Experience Suite IBM Platform for Social Business IBM Connections IBM Notes & Domino Social Edition IBM Sametime IBM Social Analytics Suite IBM Enterprise Content Management IBM Websphere Portal IBM Web Content Manager Understand specifics of culture with analytics Embed expertise in priority areas 31 © 2013 IBM Corporation
- 32. 32 © 2013 IBM Corporation
- 33. The Challenges Associated with Safety are Costly • 12% loss in market cap after 6 months1 • 1.3% loss in shareholder equity in 2 days1 Safety is about saving lives (6,000 die daily in work-related incidents)1 33 © 2013 IBM Corporation
- 34. Social Business embeds safety into culture • Streamlines Monitoring, Control & Reporting • Accelerate rapid response embedding access to experts & assets • Deploys crowd-sourced pre-emptive safety solutions ROI •Reduce spend on workers comp by 26% •Reduce injury claims by 9.4% •Reduced need for meetings, reporting & status calls raising productivity by 20-25% 34 © 2013 IBM Corporation
- 35. Jersey City Fire Department Transforming Tall Building Fire Safety Jersey City FD • Tall Building data managed & accessed on social cloud • First responders access real time building intelligence www.ebicard.com 35 © 2013 IBM Corporation
- 36. Call to Action: Public & Workplace Safety Social Business Solutions Identify major safety risks and audiences Engage communities for top risks IBM Employee Experience Suite Kenexa Talent Management Suite IBM Customer Experience Suite IBM Platform for Social Business IBM Connections IBM Notes & Domino Social Edition IBM Sametime IBM Social Analytics Suite IBM Enterprise Content Management IBM Websphere Portal IBM Web Content Manager Establish social listening for prevention Expand social safety to partners & public 36 © 2013 IBM Corporation
- 37. 37 © 2013 IBM Corporation
- 38. The Expertise & Knowledge Sharing Challenge • Employees waste 1 day a week finding information 1 • 22% of customers disengage not finding information 2 • Fortune 500 lose “$31.5B / yr failing to share knowledge”3 A shift is happening… from What 38 you Know What you Share © 2013 IBM Corporation
- 39. Social Business is the key to unlocking expertise • Displays expertise in process through digital experience • Expands knowledge with active communities • Visualizes expertise through Network Analysis ROI •30% Increase Speed to access Experts1 •20-25% increase in productivity2 •Up to 80% increase in engagement by recognizing & rewarding3 39 © 2013 IBM Corporation
- 40. Unlocking expertise 40 © 2013 IBM Corporation
- 41. Call to Action: Expertise & Knowledge Social Business Solutions Prioritize Critical Expertise Mind the Gap: Don’t overwhelm the few IBM Employee Experience Suite Kenexa Talent Management Suite IBM Customer Experience Suite IBM Platform for Social Business IBM Connections IBM Notes & Domino Social Edition IBM Sametime IBM Social Analytics Suite IBM Enterprise Content Management IBM Websphere Portal IBM Web Content Manager Access through many channels Recognize experts with highest reuse 41 © 2013 IBM Corporation
- 42. Next Step: Identify Patterns with greatest impact on your Business 42 © 2013 IBM Corporation
- 43. Our market leadership… Leading social business in three dimensions Dynamic Differentiated Deep outcomes for our clients social business engagement platform ecosystem and industry expertise #1 New! Working with more than 60% of the world’s Fortune 100 companies 43 Market Leader in Social Software Platforms, ranked #1, for four years running1 Bringing to market new, cutting-edge capabilities, including, gamification, video, compliance, project management and mobility Source 1. Source: IDC: Number 1 position from 2009-2012, IDC Worldwide Enterprise Social Software 2012 Vendor Shares, April 2013. © 2013 IBM Corporation
- 44. And industry leading solutions… 44 © 2013 IBM Corporation
- 45. …provides unparalleled experience on how to achieve value Learn CXO Studies Social Patterns Establish Strategy Define Business Value Whitepaper Act 45 Accelerate Adoption © 2013 IBM Corporation
- 46. The World Changes Fast!! Scott J Smith WW Lead, Social Business Industry & Value Assessment One Rogers Street Cambridge, MA 02142 720 342 0043 617 293 3481 mobile scott.j.smith@us.ibm.com @ smith13sj www.twitter.com/smith13sj 46 © 2013 IBM Corporation
Notes de l'éditeur
- 1 “Evolution of the networked enterprise”, McKinsey & Co, March 2013, p 46 [Analysis was 4 industries].
- 1“Customer Service and Business Results: A Survey Of Customer Service from Mid-size Companies,” Dimensional Research, April 2013, https://ibm.biz/Bdx3ec 2 “The Social Habit,” Edison Research & Arbitron, June 2012, https://ibm.biz/Bdx3N7 3 “2012 MarketingSherpa Lead Generation Benchmark Report,” MarketingSherpa, 2012, https://ibm.biz/Bdx3NW 4“HubSpot State of Inbound Marketing, 2012, https://ibm.biz/Bdx3eD 5“Putting Social Media to Work,” , Chris Barry, Rob Markey, Eric Almquist and Chris Brahm, Bain & Company,2001, https://ibm.biz/Bdx3ef
- http://www.flickr.com/photos/vestman/3871170258/ by http://www.flickr.com/photos/vestman/ 1 “Evolution of the networked enterprise”, McKinsey & Co, March 2013 2 “The social economy: Unlocking value and productivity through social technologies”, McKinsey & Co, July 2012
- http://www.flickr.com/photos/vestman/3871170258/ by http://www.flickr.com/photos/vestman/ 1 “Evolution of the networked enterprise”, McKinsey & Co, March 2013 2 “The social economy: Unlocking value and productivity through social technologies”, McKinsey & Co, July 2012
- Due to a rapidly changing regulatory environment across countries, the firm had experienced an alarming increase in the number of compliance violations. It was reaching the point where the publicity of the fines could have impacted their reputation in the marketplace. Adding to the shifting regulations, the firm was expanding quickly into new markets around the world which only increased the complexity. The traders were frustrated by the decision delays. They believed that their position in the trade was diminished as the counter-party would start to question the specifics of the deal. There was no single source of regulatory interpretations at the firm. Per the law, there was a single repository of global regulations, yet the regional and local regulations along with interpretations were spread across shared drives, databases and hard drives. Compliance would often turn to the internal legal department for a ruling on either new regulations or those regulations where the last decision was “out of date” (at the point of the project, the client determined that six months for newer regulations was “too old”). Either due to skill or possibly a culture of not wanting to be the person who made the wrong mistake, the internal legal firm would often move the decision to their external legal counsel. Due to high turnover in the industry of compliance officers and internal legal counsel combined with most new professionals “bringing their own favorite external” firm to the portfolio. The result was literally thousands of external legal firms engaged across the world with minimal concentration of business. Making the issue worse, all work was done in e-mail, phone and mail. The resulting legal matter was never captured and retained in the bank’s repositories. Finally, each compliance officer was almost an island. The average time in the position was under three years. They knew the people in their product area and location. For example, the compliance officer on the bond desk on the 20th floor of a building didn’t know their peer on the equity desk on the 15th floor. The isolation meant they didn’t have many people to turn for answers. With the mirrored fragmentation of regulations and decisions on shared drives, hard drives, etc., it was impossible to find the right person.
- The benefits were realized by connecting people to others with greater expertise as questions emerge. This is regardless of the two parties knowing each other. The benefits are not the result of changing the “process” but connecting to a breadth of sources with the appropriate expertise to give advice. Let’s focus on one line of this example for the benefits: the line that connects the compliance officer to another compliance expert. The right “experts” are identified by integrating the automated expertise engine into the current compliance applications, identifying others with the right expertise (based on their automatically populated expertise profile), determining availability and automatically connecting them. A group of compliance officers determined the impact those capabilities would have on fines, trade value, compliance efficiency and effective usage of external legal firms. In the next step, they changed the highs and lows into values. The linkage and value was clear to them. The one undervalued benefit was the reduction of external legal fees. The group believed the consolidation of a highly fragmented content would reduce the need to call external firms. However, the ease of connecting directly to one of the included firms was so convenient that the business started to shift. This not only allowed for better rates with scale, but also better knowledge of the external skills. Smarter Business Outcomes Increased compliance officer productivity Reduction in external counsel fees Reduction in regulatory fines and penalties Increased revenue per transaction; more efficient compliance decisions Reduced compliance officer turnover Reduced fines by automatically connecting the decision-maker to others with deep experience Increased the value of trades with quick compliance decisions Dramatically reduced external legal expenditures as ease of working with firm in extranet consolidated their usage
- The benefits were realized by connecting people to others with greater expertise as questions emerge. This is regardless of the two parties knowing each other. The benefits are not the result of changing the “process” but connecting to a breadth of sources with the appropriate expertise to give advice. Let’s focus on one line of this example for the benefits: the line that connects the compliance officer to another compliance expert. The right “experts” are identified by integrating the automated expertise engine into the current compliance applications, identifying others with the right expertise (based on their automatically populated expertise profile), determining availability and automatically connecting them. A group of compliance officers determined the impact those capabilities would have on fines, trade value, compliance efficiency and effective usage of external legal firms. In the next step, they changed the highs and lows into values. The linkage and value was clear to them. The one undervalued benefit was the reduction of external legal fees. The group believed the consolidation of a highly fragmented content would reduce the need to call external firms. However, the ease of connecting directly to one of the included firms was so convenient that the business started to shift. This not only allowed for better rates with scale, but also better knowledge of the external skills. Smarter Business Outcomes Increased compliance officer productivity Reduction in external counsel fees Reduction in regulatory fines and penalties Increased revenue per transaction; more efficient compliance decisions Reduced compliance officer turnover Reduced fines by automatically connecting the decision-maker to others with deep experience Increased the value of trades with quick compliance decisions Dramatically reduced external legal expenditures as ease of working with firm in extranet consolidated their usage
- 2“The Global Innovation 1000: Making Ideas Work,” Barry Jaruzelski, John Loehr, and Richard Holman, strategy+business Magazine, Winter 2012, Booz & Company, Inc. 3 Competitive Advantage in the Era of Smart,” Ginni Rometty, speaking at Council on Foreign Relations, NYC, March 7, 2013, https://ibm.biz/Bdx3nu 4“The Global Innovation 1000: Making Ideas Work,” Barry Jaruzelski, John Loehr, and Richard Holman, strategy+business Magazine, Winter 2012, Booz & Company, Inc.
- http://www.flickr.com/photos/vestman/3871170258/ by http://www.flickr.com/photos/vestman/ 1 “Evolution of the networked enterprise”, McKinsey & Co, March 2013 2 “The social economy: Unlocking value and productivity through social technologies”, McKinsey & Co, July 2012
- Sources: 2012 IBM Global Chief Executive Study The 2012 IBM Tech Trends Report Kenexa High Performance Institute, 2011/12, “Engagement Levels in Global Decline: Organizations Losing a Competitive Advantage
- http://www.flickr.com/photos/vestman/3871170258/ by http://www.flickr.com/photos/vestman/ 1 “Evolution of the networked enterprise”, McKinsey & Co, March 2013 2 “The social economy: Unlocking value and productivity through social technologies”, McKinsey & Co, July 2012
- Souces 1 “2013 M&A Outlook Survey,” KPMG, 2013. 2 “The Big Idea: The New M&A Playbook”, Clayton M. Christensen, Harvard Business Review, March 2011. 3 “Perspectives on merger integration,” McKinsey & Company, June 2010. 46 Reasons Why So Many Acquisitions Fail, James Price and University of Michigan, Forbes, October 2012, http://read.bi/10rJhTq 5 “Perspectives on merger integration,” McKinsey & Company, June 2010.
- 1 “The Big Idea: The New M&A Playbook”, Clayton M. Christensen, Harvard Business Review, March 2011 2 “Evolution of the networked enterprise”, McKinsey & Co, March 2013
- Value Proposition Provides all of the functionality required to address the differing requirements between existing source systems, and new IBM software target systems through the use of connectors which are available for all major Content Management Systems. In addition, our migration engineers have expertise in building custom connectors, ensuring that any existing customer data can be successfully migrated to any target IBM product. User Experience / Key Features Web content can be migrated from any source to any IBM product Web components will always have the correct metadata and information architecture High volume processing capabilities mean rapid application changes Rules based processing guarantees 'quality built in' All changes can be tracked and logged providing full accountability The new target IBM product will have a maximum level of data quality
- Source: 1 "Occupational Health Services And Practice". Ilo.org. Retrieved 2013-02-15. The Challenges Associated with Workplace Safety are Costly! Let’s talk about why accidents occur and the costs associated with them……. Accidents in the workplace do not just occur, they are caused by a multitude of reasons…. Most have to do with a failure to plan and execute which results in potential disaster… Many industries including the airline manufacturing industry for example, are under constant pressure to innovate and develop products that push the boundaries. Often, technology advances outpace safety and security practices which creates a recipe for disaster… Adherence to effective methods, would mean that most incidents would be completely preventable…. Looking at the reasons for workplace safety issues, all have to do with people: culture, education communication & leadership. We have solutions to address these challenges. Workplace injuries are a costly affair, accounting for $250 Billion in illness and injury costs in the US alone. Globally this number is in excess of $2.74 Trillion The upside of having effective safety practices Is huge when you consider the loss of productivity for extended periods of time… TRANSITION TO THE NEXT SLIDE…..Let’s look a a few additional facts…
- Source: "Occupational Health Services And Practice". Ilo.org. Retrieved 2013-02-15.
- Source: 1. “Who Knows What?”, The Wall Street Journal Online, Updated June 15, 2012, https://ibm.biz/Bdx93H 3 “Why Knowledge management is important to the Success of your company,” Lisa Quast, Forbes Online, August 2012, https://ibm.biz/BdxCF4 Traditional solutions in article are central repositories managed by a small group of people.
- http://www.flickr.com/photos/vestman/3871170258/ by http://www.flickr.com/photos/vestman/ 1 “Evolution of the networked enterprise”, McKinsey & Co, March 2013 2 “The social economy: Unlocking value and productivity through social technologies”, McKinsey & Co, July 2012
- Situation: A small business owner needs to get a new van for his construction business. He has the ability to pay cash for the van, but that may limit other investments that will help him grow the business. He needs advise on taking a loan vs. paying cash. I tap the icon for Lending.” “I see there’s a lending menu. When I press it, there’s actually a menu on Small Commercial Lending. I press it.” The user could also tap the “View all experts.”
- IBM continues to be the partner of choice because we lead in the three most important dimensions of social business solutions: We have an extraordinary ecosystem of business partners and services providers, along with the our deep reservoir of industry expertise, which allows us to bring new capabilities, like gamification, compliance, and mobility to bear on our clients' needs. We've differentiated our social business engagement platform by building it atop the #1 (ranked #1 by IDC three years running) Social Software Platform in the industry. This is social software that's ready for business, with a broad set of social networking, collaborative, and social analytics capabilities. IBM has also added ground-breaking services like Files, which lets users share their content simply, while still maintaining control. It's no wonder that 60% of the Fortune 100 companies look to IBM for social business solutions.
- In the heart of our strategy is Our Social Business platform. It consists of 4 key elements Social Networking, Analytics, Content, and Integration/Aggregation, it specialize in leverage people to connect and share, curate content, intelligent discovery, surfacing insight base on dynamic of linkage between people, informatton and people and information to help you guide decision and action. It enables you to deliver an great experience to your customers, employees and partners that is made to meet the need of you business both external and internal. In addition to security, scalability, and business compliance characteristic that is known for IBM, we continued to maintain and embrace Open Standard for integration as well as support the flexibility of deployment choice that enterprise needed today and future. Together this provides a foundation to build business solution that is inherit social, creating a system of engagement that is base on people and content.
- Here's how IBM can help you get started TODAY. Through Connections (2012 IBM CEO Study): Learn from CXO Studies Social Business Agenda: Establish linkage to Strategy Business Value Assessment: Define Business Value Adoption: Accelerate Adoption