IBM Social Business TechTalk - 19 Nov 2013

© 2013 IBM Corporation

The New Reality:Transforming Processes with Social Business

November 19, 2013

© 2013 IBM Corporation2

Winning with Social

Focus on ROI

Embed into strategic processes

• ROI is measurable: $900B – 1.3T/yr (McKinsey)1

• Highest ROI in areas with many decisions, interactions, audiences & risks

• It’s about the process; not the “S Word”

• ROI Again: Process are measured


Top 6 Patterns that accomplish both


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


Social builds Relationships across touchpoints & channels

SalesDigital

Marketing

Online / MobileCommerce

Call CenterCustomer Service

Ongoing Relationships


Social reinvents customer engagement

ROI

•15% increase in Revenue1

•20% increase in effectiveness of marketing (out bound)1

•20% increase in customer satisfaction1

• Build relationships that maintain community participation outside of transactions

• Provide consistent experience across channels

Lasting Relationships

© 2013 IBM Corporation81 “Evolution of the networked enterprise”, McKinsey & Co, March 2013

Amadore

• Engaged younger audience

• 125% increase in new visitors

• Reachable network of 14 million


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”


Pain Points

• Reduced sales and market share

• High turnover in sales

• Limited product innovation

• Not leveraging sales expertise broadly

The challenge: Integrate “sales teams” while revenue is flat or falling due to customized products, complex deal structures and limited innovation

Information gaps• Many sources of information • CRM & product information not

linked

Sales

Expertise Gaps• Salesperson has limited

relationships

Sales with Expertise

OtherExperts

Other Large Customers

Collaboration gaps• Sales has limited channels to

customer• Customers don’t trust company

info

Large Customer

Example


Embed expertise and assets into core sales process

Embeds relevant resources to

client opportunity from Verve social

networks

Identifies people with

relevant expertise to

assist

Example


Other Experts

Salespeople with Expertise

The solution: Integrated networks based on need delivering higher revenue and brand sentiment

Solutions

Sales Experience• Portal integrating core CRM

application• Embedded expertise

identification• Contextually relevant sales,

product and customer information

• Integrated Instant messaging

Customer Connect across

channels Private peer

communities

Sales Embedded expertise access with CRM app Role based Sales experience Multiple channels to customer

Culture Incentives for those

with expertise to assist

Digital Customer

Experience

Sales Experience

Associate Experience


SalespersonLarge Customer

Example

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


Business impact from pattern

Pattern Roleinteractions

Solution Enablers Conversion Rate

MEDIUM

HIGH

MEDIUM

Cost of Sales

MEDIUM

MEDIUM

MEDIUM

Revenue per Customer

HIGH

HIGH

Time to Sale

HIGH

MEDIUM

Measurable outcomes from connecting “roles” in the pattern

Sales with Expertise


Sales

OtherExperts

Large Customer

Sales

Large Customer

Example

• Current conversion rate• Projected conversion

rate with solution• Total # of annual

transactions• Average transaction

value

Required inputs for ROI Calculation:

• Current Revenue per Customer

• Projected Revenue per customer

• # of customers

• Annual cost of sales

• % improvement for the solution.

• Average time for close deal

• % improvement for the solution.

Sales Experience

Digital Customer Experience


Sales Experience

Digital Customer Experience



Call to Action: Reinventing Customer Engagement

Target with social analyticsTarget with social analytics

Engage across channels to Engage across channels to build trustbuild trust

Build targeted communities Build targeted communities to engage marketto engage market

Leverage trust for sales, Leverage trust for sales, service, & moreservice, & more

Social Business Solutions

IBM Platform for Social Business

IBM Employee Experience SuiteKenexa Talent Management Suite

IBM Customer Experience Suite

IBM ConnectionsIBM Notes & Domino Social EditionIBM Sametime

IBM Social Analytics Suite

IBM Enterprise Content Management

IBM Websphere PortalIBM Web Content Manager


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


Social increases innovation

ROI

•20% Increase in successful innovations1

•20-25% increase in productivity2

• Breaks silos with social communities

• Taps the wisdom of crowd with ideation for top challenges

• Redefines leadership innovation with video, blogs, etc.


Ricoh

20% Faster introduction of new products

• Transformed global product planning

• Innovation by breaking down silos


Call to Action: Innovation

Scope innovation priorities Scope innovation priorities & networks& networks

Crowdsourcing top issuesCrowdsourcing top issues

Focus on commercializing Focus on commercializing innovationsinnovations

Accept that a majority of Accept that a majority of innovations will failinnovations will fail










The Recruiting and Onboarding Challenge

• 90% do not have skills to be successful.2

• Declining engagement loses $25,000 profit / employee3

While 71% say employees are #1 source of economic value…1

Social networking is the #1 way to attract

talent


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


5%increase in employee engagement in the first year

Cabela’s

• Attract best talent & promote new culture

• Tailored internal & external messaging


Call to Action: Recruiting & Onboarding

Define talent acquisition Define talent acquisition needsneeds

Engage candidates in Engage candidates in company experience company experience

Leverage analytics to Leverage analytics to select the right talentselect the right talent

Integrate new hire into Integrate new hire into relevant communitiesrelevant communities










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


Social increases M&A success

ROI

•Reduce the 50-83% M&A failure rate1

•30% Increase Speed to access Internal Experts2

• Leveraging single channel to engage organization on culture

• Engages tippers in key competencies with social network analysis

• Accelerates sales embedding expertise into core process


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”

Large NA Bank: Speeding Pace of Integration


Map social networks highlighting integration opportunities

Social identifies where to focus integration efforts


Trust of CEO who communicates openly on Social

82%

Creating Common Culture

Monitoring effectiveness of change programs


Engage on M&A vision at Engage on M&A vision at announcementannouncement

Identify top resources from Identify top resources from business casebusiness case

Understand specifics of Understand specifics of culture with analyticsculture with analytics

Embed expertise in priority Embed expertise in priority areasareas

Call to Action: Mergers & Acquisition










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


Social Business embeds safety into culture

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%

• Streamlines Monitoring, Control & Reporting

• Accelerate rapid response embedding access to experts & assets

• Deploys crowd-sourced pre-emptive safety solutions


Jersey City Fire Department

• Tall Building data managed & accessed on social cloud

• First responders access real time building intelligence

Jersey City FDTransforming Tall Building Fire Safety

www.ebicard.com


Call to Action: Public & Workplace Safety

Identify major safety risks Identify major safety risks and audiencesand audiences

Engage communities for Engage communities for top riskstop risks

Establish social listening Establish social listening for preventionfor prevention

Expand social safety to Expand social safety to partners & public partners & public










The Expertise & Knowledge Sharing Challenge

A shift is happening…

from What you Know What you Share

• 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


Social Business is the key to unlocking expertise

ROI

•30% Increase Speed to access Experts1

•20-25% increase in productivity2

•Up to 80% increase in engagement by recognizing & rewarding3

• Displays expertise in process through digital experience

• Expands knowledge with active communities

• Visualizes expertise through Network Analysis


Unlocking expertise


Call to Action: Expertise & Knowledge

Prioritize Critical ExpertisePrioritize Critical Expertise

Mind the Gap: Don’t Mind the Gap: Don’t overwhelm the fewoverwhelm the few

Access through many Access through many channelschannels

Recognize experts with Recognize experts with highest reuse highest reuse










Next Step: Identify Patterns with greatest impact on your Business


Leading social business in three dimensions

Dynamic

outcomes for our clients

Differentiated

social business engagement platform

Deep

ecosystem and industry expertise

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

of the world’s Fortune 100 companies

Working with more than

#160% New!

Our market leadership…

Source1. Source: IDC: Number 1 position from 2009-2012, IDC Worldwide Enterprise Social Software 2012 Vendor Shares, April 2013.


And industry leading solutions…


…provides unparalleled experience on how to achieve value

CXO Studies

Define Business Value

Establish Strategy

Accelerate Adoption

Learn

Act

Social Patterns Whitepaper


The World Changes Fast!!

Scott J SmithWW Lead, Social Business Industry & Value Assessment

One Rogers StreetCambridge, MA 02142720 342 0043617 293 3481 mobile

[email protected]

@ smith13sjwww.twitter.com/smith13sj

IBM Social Business TechTalk - 19 Nov 2013

Technology

Transcript of IBM Social Business TechTalk - 19 Nov 2013