Social Media and Innovation at IBM

Social Media and Innovation
in IBM
Anders Quitzau, Innovation Executive
Copenhagen Business School 16.04.2013

AndersQuitzauIbm

1
© 2013 IBM Corporation

Social Media & Innovation

IBM’s definition of innovation

§ Intersection of invention and insight
§ Creates value
§ Holistic view “Innovation is a societal -- not a
– Business model technological -- phenomenon,
Sam Palmisano, CEO, IBM Corporation
– Products & services
– Operations

2 © 2013 IBM Corporation


IBM’s early days....



IBM these days....

Named one of Most Innovative Companies by....


Smarter'Planet'is'about'how'

Smarter Planet is about how integrated technologies
integrated'technologies'change'the'
change the way in which the world functions

way'in'which'the'world'func7ons'

We'are'now'able'to' People,'systems,'and' Being'intelligent'means'
measure,'sense'and'see' objects'are' being'able'to'analyze'data'
the'exact'condi7on'of' interconnected'by' and'understand'the'
everything' networks'' networked'things'''

Smart energy Smart traffic Smart oil fields

Smarter water Smart food supply
management We Innovate
because
We must

Smart disease Smart architecture Smart healthcare
prevention

17


Generational shifts unleash different work styles
Older workers Mid- career workers New generation
(Age 50 +) (Age 35 – 50) (born after 1980)
growing as % of workforce shrinking as % of workforce growing as % of workforce

wisdom and intellectual essential professionals critical to long-term viability
wisdom and intellectual and middle managers and innovation
capital of the organization and middle managers

email instant
messaging social
networking


IBM has a workforce of over 500,000
of which almost 50% are mobile
Major Employee Sites
Customer Fulfilment
Manufacturing
Employee Service Centers

IBM Research Centers
IBM location
Mobile employees

• 170 countries
• 2,000 locations
• Nearly 100
acquisitions since
2003
• 50% employees
have < 5 years
experience LC



A social business optimizes interactions among people
to gain a competitive advantage

Workforce Customer Care and Product and
Optimization Insight Service Innovation



Companies capture new innovative ideas from both
internal and external sources
Internal & External Sources for New Idea Generation

Customers directly 38 %

Employees (general population) 35 %

Consultants 27 %

Internal sales and service units 25 %

Business partners 23 %

Associations, trade groups, conf boards 19 %

Competitors 17 %

Other 6%

Think-tanks 6%

Academia 6%

Internal R and D 4% Internal Sources
Media, Publications 2%
External Sources
Internet 2%

Citizens 2%

Labs/Other Govt institutions 0% Source: The Global CEO Survey 2006
14


We use social media to distribute content and get into dialogue



Social Media in IBM

80+ accounts using “IBM” in the name
(25% from outside the US) – over 3,000 IBMers
on Twitter
200+ IBM channels

39,000+ users, 500+ IBM groups
(65% outside the US)

378,000+ (*including Alumni)

75,000+

100,000 IBMers collaborating with
200,000 non-IBMers



Our philosophy of innovation is: Fail many, but fail cheap
- A new paradigme in innovation enabled by Web 2.0:
Yesterday – as was 1 Today – As is
§ Ideation and Product
Inception from the
Ideas source: expanding source for Ideas source:
Internal innovation Internal, partners and customers
idea idea idea idea
idea § Use Collaborative idea
ideaidea ideaidea idea idea
tools to solicit idea idea idea idea
interactive feedback.

Weeks to months
idea
18 months to 2 years

§ Limited
community to
foster new
innovation
Service Service Service

§ Little user
interaction and
market feedback § “Build it and
Service
§ Service silos
§ Limited reuse
they will 3 2 § Use of exposed
come” § Larger variety of
approach compelling offerings common capabilities
to offer customers to enable rapid
service assembly

Breadth



Many Social Business Initiatives
Mobilize Interest, Incubate,
Create Mobilize Interest, Implement,
Collaborate Prototype and
Idea Collaborate Take to Market
Validate
INSIDE

IBM Lines of
Business

Internal
Stakeholders
Global
Technology
Outlook

Clients
FOAK
OUTSIDE

Sametime 3D

Partners
IBV reports


Social Business Initiatives - Innovation Jam

- 90 hours
- 150,000 people from 104 countries
- Tapped employees form over 1000 companies across 20 industries
- 90,000 log ins
- 32,000 posts
- Smarter Water concept emerged
- Resulted in launch of 10 new IBM business
- Seed investment totaling $100 million



Social Business Initiatives - Innovation Hub
24x7 innovation marketplace

§ Localized collaborative
innovation model for directed
results
§ Integrates Lotus Connections social
network with idea sharing
§ Sharing business needs, innovation,
implementation and recognition
§ $$$$ estimated impact of idea
programs:
– 45% new revenue opportunities
– 37% time savings improvements
– 18% cost savings improvements
– cultural suggestions

4


Social Business Initiatives - IBM Connections
IBM’s internal Profiles hold over 635,000 entries* & serves over 4 million searches
per month. It’s the hub of user requests & all applications authentication for IBM.

Communities
IBM hosts over 85,177 online communities, each with shared resources and discussions.
More than 38,422 are private [restricted] communities.

Blogs
IBM’s blogging platforms host 42,929 blogs, 303,296 entries with 106,736 users and
84,439 tags.

Bookmarks
IBM’s internal social bookmarking system has 1,370,336 total bookmarks with 3,908,271
tags and with 76% of them publicly shared.

Activities
IBM’s internal Activities service contains 259,013 unique activities with 4,169,728 entries
and with 556,429 registered, 'distinct', members.
Files
IBM’s internal social file sharing & storage service contains 581,081 files, shared 1,501,706
times with 338,903 files added to folders [collections].

Wikis
IBM’s internal Connections Wiki platform hosts 672,968 pages viewed 42,993,500 times.


IBM Connections for idea generation



IBM Connections for idea generation

Over 30 IBM participants
from 14 countries
participated in our Idea Lab
over a 7 day period.

They exchanged ideas on key topics in the mobile payment industry.
The results were exciting, creative, and most of all – innovative.

Innovation@IBM

Measured Benefits of Social Software in IBM

–  87% of IBMers collaborating with others using social software increase skills
–  84% access experts quicker
–  74% increase their productivity
–  64% improve personal reputation
–  84% share knowledge with others
–  77% re-use assets
–  64.5% improve personal reputation
–  64.5% increase their sense of belonging
–  59.9% increase sales
–  42.4% improve customer satisfaction

71


Personal Profile



Innovation@IBM

TAP Examples: Hard to find the right person, the right information, the
right tool

! EXPERTISE LOCATOR
! Employees can share
! Areas of expertise
! 10,000 logins,
! over 100 experts
! contacted by end users

! ANSWERS
! Grassroots : people can ask questions,
! find and provide answers
! Approximately 8000 users per month

64


Innovation@IBM

Social Sparklers

! Internal External

" 433,000 users of IBM Connections" • Linked In"
" 26,000 individual blogs" "  304,000 employees"
" 91,000 communities" "  343,000 IBM alumni"
"  692,277 people follow IBM"
" 623,000 ﬁles shared"
"  Greater IBM Connection: 70,000"
" 9.5M ﬁle downloads"
" 50M instant messages/day" "  Twitter: Approximately 32,000"
" 35,200 enrolled in Expertise Locator" "  Facebook: 171,600 listed IBM as workplace"
" More than 120,000 mobile IBMers" "  People for a Smarter Planet on Facebook: approx
" 4 Innovation Jams: 500,000 participants quarter of a million followers"
"  Youtube: Nearly 4.5 million video views"
"  smarterplanet.com blog: 50,000 visits/month"




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Social Media and Innovation at IBM

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