IBM Finland Social Business Presentation 2013

Social Businesstransformation isasmuch cultural
asit istechnological. A Social Businessgoes
beyond themereimplementation of social media
platforms, it embracesand cultivatesaspirit of
community and collaboration throughout its
organization—both internally and externally.

© 2013 IBM Corporation
Social Business Workshop
How to get started with Social Business
Social Business Value and Adoption Consultant
Worldwide ICS SWAT Team
UK, Ireland & Scandinavia
IBM Finland, 5th
June 2013

Tervetuloa!
1. Show me the money - ROI.
2. Scratching the itch - AGENDA
3. Low-hanging fruit - Patterns
4. OK, now what? – 10 Steps
5. Questions?

Show me the money:
Return on Investment

© 2013 IBM Corporation6
Reducing Operating Costs through Social Business Processes
Customer Service
Reducing customer
support costs by 16%
Increasing customer
satisfaction by 20%
Product
Development
Reducing time to market for
products/services by 20%
Increase number of successful
innovations by 20%
Sales
Increasing revenue by 15%
Reducing travel costs by 20%
Marketing
Increasing effectiveness of
marketing by 17%
Reducing marketing costs by
20%
Source: Business and Web 2.0: An interactive feature, McKinsey Quarterly, 2011

Social Business Transformation can unlock tremendous opportunity
for any enterprise
Customer
Care & Insight
Workforce
Effectiveness
Product
& Service
Innovation
What's the value
to the business?

81% of surveyed consumers
received purchase advice
from friends and followers
through a social site.1

Amador: monitors brand reputation,
anticipate issues providing closer
engagement with new client base
resulting in 40% web
responsiveness.

Standout organizations are
57% more likely to allow their
people to use social and
collaborative tools.3

Lowes: created a collaborative
community so innovation could come from
the store floor and drive business results.
Sources: 1. Click Z, January 2010 2. Talent Management Magazine Feb 2012 3. IBM CHRO Study 2010

China Telecom: decreased risk by
expanding sources for new product ideas,
expanding the source of product ideas
with 554 new contributors, and an idea in
10 minutes.

Up to 30% increased in
productivity with use of social
tools internally with
employees.2
Example

Creating a smarter workforce
LaVan & Neidenberg The law firm increased its customer
base fourfold while holding down staff growth through
process efficiencies
80%
Boost in Gross
revenue
Speeds claims filed by 66 percent
and reduces operating costs by 25
percent.
Within five months, the company
was able to process and help 53%
more veterans and disabled people.
Reduced failed applications by 25%

Integra Legal trail-blazed social business tools to allow
their dispersed workforce to be closer to their clients, and
collaborate across teams
Improved profitability and market share
with the ability to offer lower fees in a
competitive market with dispersed
workforce
25%
Increase in
productivity
“The innovative approach offered by the
professional practice management system has
created a streamlined work environment that
maximizes the use and effectiveness of
resources.”
— Anna Liscia, senior partner,
an Australian legal firm

with a voice in innovation
Cemex redefined their product development process through
a new collaborative initiative called “Shift”
A social business transforms
product and service innovation
through global collaboration
1/3
Reduction time of
new product
development

ROI in Action at Lowes
http://www.dachisgroup.com/2011/09/serendipity-happens-to-deliver-million/

Reliance Life is integrating social business portal
technologies into their policy origination to grow branch
offices and service more customers
Integrating social business
technologies into their branch-based
operations resulting in industry
leading growth while reducing
operating costs by 30%
30%
reduction in
operating cost

Ricoh uses social business tools in its product planning
process to generate new ideas with lateral
communication on a global scale
20%
Reduction in
required staff
Developed a new work style based
on lateral information sharing that
reduces staff hours by as much as
20 percent.

TD Bank Group impoved its internal teaming and its
customer service across geographic & organizational
barriers, by integrating social business solutions into their
operations processes
Reduced e-mail by up to 25%, shortened
on-boarding time by 50%, eliminated
unnecessary travel and meetings
expenses, and created new channels for
engaging customers.
Improved customer
service and
employee
communication
“TD Bank is committed to weaving social networking into everything we do and how we do it.”
— Wendy Arnott, Vice President of Social Media and Digital Communications, TD Bank Group
“TD Bank is committed to weaving social networking into everything we do and how we do it.”
— Wendy Arnott, Vice President of Social Media and Digital Communications, TD Bank Group

Children’s Medical Center of Dallas is leading by
integrating social business technology into their patient
care and disease management processes
Creating exceptional customer experiences
Created customer advocates and
redefined how they care for patients to
improve patient experiences and health
outcomes with private support
communities
75%
reduction in clinic
phone calls

An emergency operations center improving emergency
response time and decision making with unified
communications
Improve
Communications,
Reduced costs
Reduced the number of radios
needed by the Joint Emergency
Operations Center from 400 to 24,
resulting in a roughly 92 percent
cost reduction.

Chilean Red Cross doubled the technological capabilities
of its disaster response operations by replacing manual
processes and in now leveraging online collaboration tools
Seamlessly connected their first
responders to collaborate and speed up
their disaster response. And accelerating
search rate completion for missing
persons from two years to two weeks.
100%
increase in
response efficiency

Amadori transformed it's marketing process using social
to create customer advocates and boosted presence with
new customers
Creating exceptional customer experiences
Identified and predicted consumer
buying preferences, refined their digital
marketing campaigns, to generate
more sales and reach a new, younger
customer demographic
100%
Improved exposure

Tagging is also integrated with IBM Connections tagging function

Social commenting on intranet articles,
are stored as threads in a Connections
community

Front page in E-Gate Community (IBM Connections)
- branded according to Electrolux standards
- with Widget consuming and presenting my Top News from Intranet

© 2013 IBM Corporation23 © 2013 IBM Corporation
Social Business Agenda
- Scratching the Itch

Social Business AGENDA
Linking Social Business to the Organisation’s Business Priorities
Nimble
Engaged
Transparent

The approach focused on key areas to start alignment
• Business Priorities
• Business challenges &
pain points
• Impacted Audiences
• Potential social
scenarios / processes
• Audience specific needs
– Expertise
– Information
– Related “process
domain”
• How currently engage
• Defining priority
social opportunities
– Social Process
Patterns
– Example day-in-
the-life

The Strategic Goals are the source of the Social Priorities
Example
Understanding the Customer’s goals will be during pre-workshop activities
Example Goals:
•Extending brand from consumer to SME and Large Enterprise market
•Building trust with enterprise customers to provide services beyond voice and data
•Extending capabilities through partnerships and acquisitions
•Creating and delivering strong and easy-to-use solutions targeted at SME market
•…

For top goals, we start with challenges and audiences…
Goal Business Challenges to
achieve Goal
Impacted
Audience(s)*
2X SME
Market Share
by 2015
 Building brand recognition in
SME market
 Demonstrating to clients an
understanding of their specific
requirements
 Creating tailored solutions &
bundles
 Providing personalized
service to a very distributed
customer-base
 Upselling from core bundles
(e.g., web hosting, …)
 Existing customers
(expand services)
 New Customers
 Sales (Geo,
Industry, and Size)
 Business Partners
 Product
Management /
Service
Development
 Account Executive
* Input to Analytics Plan
Example
Business Goals
2X SME
Market Share
by 2015
Increase
Services per
Customer
Increase
products per
customer
Grow
Partnering
and M&A

…which are the foundation for potential Social Patterns
Goal Business Challenges to
achieve Goal
Impacted
Audience(s)*
Potential Social Patterns
2X SME
Market Share
by 2015
 Building brand recognition in
SME market
 Demonstrating to clients an
understanding of their specific
requirements
 Creating tailored solutions &
bundles
 Providing personalized
service to a very distributed
customer-base
 Upselling from core bundles
(e.g., web hosting, …)
 Existing customers
(expand services)
 New Customers
 Sales (Geo,
Industry, and Size)
 Business Partners
 Product
Management /
Service
Development
 Account Executive
1. Connect SME Clients to share with others
sharing opportunities and challenges
2. Online engagement (social, gamification,
…) on how to save cost as SME (actions not
related to technology)
3. Build online relationships with people vs.
virtual and/or phone support (faces, names,
…)
4. Engage customers in product innovation
(crowdsource, gamification, …)
5. …
Example
Business Goals
2X SME
Market Share
by 2015
Increase
Services per
Customer
Increase
products per
customer
Grow
Partnering
and M&A

Audience / Role Pain Points and Gaps
Desired Role-based
Expertise & Experience
Existing Expertise &
Thought Leadership
How & Where Currently
Engaged
Existing customers
New customers
Sales (Geo,
Industry, SME
Size)
etc...
Patterns are enhanced by specific audiences needs
Example
In process

Deliverable: Strategic Social Priorities
H
Quick WinsStrategic Must Haves
Low Hanging FruitMoney Pits
L
L
H
H
Social Priorities
Example

Social Business Agenda Workshop Process
• Get client background
• Interview key
stakeholders
• Confirm client goals
• Tailor workshop
• Conduct workshop:
– Business Goals
– Initiatives
– Socially Network
Business Processes
– Understand
audiences
• Breakouts as needed
• Consolidate output
• Formalize next steps
• Review findings with
core team
• Deliver Executive
Report

Sample Agenda for Executive Workshop
Time Topic
45 Overview of Workshop and Agenda framework
60 Align Organizational Goals & Network Processes
• Review draft goals
• Discuss existing strategic priorities – prioritize Social Business focus
• Identify additional goals from analysis of key processes
• Map top 2 Goals to Audiences & Social Initiatives
• Finalize resulting Social Goals
30 Align Culture
• Review culture interview analysis
• Identify gaps in Culture framework – identify potential actions
• Review governance and start to identify potential participants
• Prioritize gaps and identify owners for next steps
30 Gain Trust & Engage Trough Experiences
• Select top initiative to understand audience trust
• Define breadth of audiences (internal and external)
• Map audience goals, current audience engagement, audience expectations of company &
influencers/tippers
• Give direction to owners of trust and engagement plans
Example

Sample Agenda for Breakout Sessions (as needed)
Time Topic
90 Gain Trust & Engage Trough Experiences
• Select 1-2 audience(s) to begin Trust Plan and Engagement Actions
• Identify methods to gain trust from selected audience (expertise, thought leaders, communities, …)
• Discuss engagement actions for audience across Interactive, Integrated and Information
• Identify owner(s) to complete Trust Plan and Engagement Plan
60 Network Business Processes
• Prioritize top 3-5 “social process opportunities” from map of goals mapped to core and industry
processes
• Discuss key social opportunities for 1 process (e.g., crowdsourcing, embedding social linkages into
core applications, …)
• Identify owners for completing prioritization and actions (if Digital Council not in place)
45 Design Reputation and Risk Management & Analytics Approach
• Identify types of issues requiring response
• Define initial members and actions of brand army
• Review analytic requirements from previous workshop actions
30 Prioritization & Next Steps
Example

Culture Assessment
Cultural Theme Culture Questions
C = Current D = Desired
1 2 3 4 5
Boundaries Isolated functions Cross functional cooperation
Teaming Individual competitive Team oriented
Learning Slow adopting new skills Continuous Learning Culture
Management Style Controlling Delegating
Vertical Comms Bureaucratic, formal channels Free communication up the org
Open Comms Guarded Communication Open Communication
Initiative Follow specific instructions Take initiative
Risk Tolerance Punish mistakes Learn from mistakes
Pace Slow, cautious pace Fast pace
Rules / Process Keep to rules Ignore rules
Hierarchy Many organizational layers Few organizational layers
Template

Low-Hanging Fruit:
Social Business Patterns

6 Business Patterns / Use Cases are How We are Opening the
Market
Merger &
Acquisition
Safety
Find
Expertise
Knowledge
Sharing
Recruiting &
Onboarding
External Customer
Insights
6 cross-pillar patterns touch
70% of the pipeline
Goal: To bring value to clients
and increase our average deal
size
Elements:
•ISSC services – 3 week wrapper
•Client leave behind
•Coach & focused help
•Presentation, demo & POV
•References

Social Business Patterns White Paper
Social Business PatternsWhite Paper
http://ibm.co/11r9PIy

40
6 Business Patterns / Use Cases are How We are Opening
the Market
Merger &
Acquisition
Safety
Find
Expertise
Knowledge
Sharing
Recruiting &
Onboarding
External Customer
Insights
6 cross-pillar patterns touch 70% of
the pipeline
Goal: To bring value to clients and
increase our average deal size
Elements:
•ISSC services – 3 week wrapper
•Client leave behind
•Coach & focused help
•Presentation, demo & POV
•References

Use Case: Finding Expertise
Every day someone in your
organization will have a
problem which someone else
has already solved.
Solving the same problem ove
and over can add more than
30%to project costs1
.
1 Reducing rework levels to enhance project performance levels, Ekambaram Palaneeswaran, Hong Kong University, 20

Using IBM’s Platform for Social
Business helps you capture
what you already know.
CEMEX did this and now
implement new procedures and
products 33% faster

Use Case: Finding
Expertise
Capturing & using your
organization’s expertise
needs three ingredients
1
“The High Cost of Engagement”, Keith Ayers
http://www.engagementisnotenough.com/pdfs/Cost_of_Engagement.pdf

Find and
trust an
expert
Embed
Expertise
Create &
Reward
Expertise
Increase Speed to access
External Experts 1
30%
Potential improvement in
knowledge worker productivity 2
20-25%
2
McKinsey Global Institute - The social economy: Unlocking value and productivity through social technologies, July 2012
1
McKinsey Global Survey results: Evolution of the networked enterprise, March 2013
Increase in engagement using
Rewards for sharing3
80%
3
Kabir Ahmad, CEO & Lead Analyst at Gamification Research, November 2012.

Goals:
•Locate employees with
specialized expertise
•Assemble teams more
quickly
•Coordinate among diverse
locations
Results:
•Increased productivity for
20,000 employees
•Higher employee morale
through increased
engagement

The 3rd
largest building
materials company in the
world with 47,000 employees
in 50 countries.
Introduced a social business,
knowledge sharing project –
SHIFT.
Sharing expertise led to new
best practices and process,
implemented in 1/3 of the
time it used to take.

Put finding an expert in the palm of your
hand with the IBM Expertise Locator.

Package Lookup
Project Lookup
MyGreenwell
Select a category of
expert

100 - Groundwork
200 - Drainage
300 - Electricity Supply
310 - Water Supply
400 - Foundations
500 - Environmental
View All Packages
Packages Lookup
Competitor Lookup
MyGreenwell
Select a category of
expert

Public Electricity
Supply &
Connection
Expert
Street Lighting
Advisor
Pick a good match of
skills for the job.

Public Electricity
Supply &
Connection Expert
Greenwell Certifications
Greenwell Certification
Electricity Supply Expert
Review the expert’s
profile.

Cabling
Brownouts
Emergency Generators
Greenwell Expertise
Interconnections, Overvoltage
Cabling, Brownouts, Generators,
Interconnections, Current
Explore their areas of
expertise.

wills@greenwell.com
work:
mobile:
message:
(212) 555-2633
(212) 555-4860
(212) 555-7512
wills@greenw.comemail:
Contact the expert.

Add to my Favorites.

Record why he’s a
favorite.

Package Lookup
Project Lookup
MyGreenwell
Fast access to your
favorites.

Public Electricity
Supply &
Connection Expert
Greenwell Certifications
Greenwell Certification
Electricity Supply Expert
Share my experiences.

Thank the expert.

Say why you are
thanking them.

Getting Started
Expert Locator
from ISSC
for iOS, Android
IBM Connections
Social Business Adoption Process

OK– I’m sold on social –
what do Ido now?

Social Adoption by the Numbers
100
0
79%
27%
22%
use, or plan to use, social media 1
have dedicated social role 2
of middle managers prepared 3
Social Adoption Challenge
Sources:
1. Harvard Business Review Analytics Services; 2. Ragan Communications and NASDAQ OMX Survey;
3. IBM® 2012 Social Business Study.

Top Ten Best Practices for Social Business Adoption

Create a New Way of Working
• Integrate social into
business processes
• Model role interactions
vs. process flows
• Tailor experience by
audience
• Set governance to shift
culture
• Create new social job
roles
CREATE

Process: Project Management with Suppliers at Russell’s
CREATE
Integrate into Processes
Process
•Building new stores
Social Add
•Community with
external partners
(architects, builders,
franchisees, etc.)
•Increases sales in
multiple markets and
cut key costs by 33%

The 2013 Australian Open
Experience Goes Social and Mobile
CREATE
Customize the Experience

Establish Social Guidelines
CREATE
Drive Culture with Governance

What Are the New Roles?
Community Manager
Define scope, desired outcomes and
boundaries
Balance the needs of knowledge
contributors and seekers
Promote membership and reward
active participation
Support active and appropriate
content contributions
Monitor, measure and share
engagement & business value
Educate and Advocate regarding
community value
We’re HiringWe’re Hiring
• Community Strategist
• Community Manager
• Social Analytics Manager
• Social Reputation
and Risk Manager
• Social Customer Support
Manager
• Social Innovation
Manager
CREATE
Hire Social Job Roles

Launch with Top and Groundswell
Establish top-down
Leadership
•Senior Leaders
“walk-the-talk”
•Shift to social
communication
Build a groundswell
•Identify early adopters
to evangelize value
•Enable across roles
and audiences
LAUNCH

Executive Blogging inspires and communicatesExecutive Vlogs at IBM (Video Blogs)
“What’s the big deal?
This is simply another
medium for me to listen
to my customers, and
talk to my customers.”*
-- Bill Marriott, Chairman,
Marriott International
Source: B. Dybwad, Should CEOs be fluent in Social
Media, Mashable.com
http://mashable.com/2010/04/23/should-ceos-be-fluent-in-social-me
LAUNCH
Leaders Show the Way

Electrolux Leverages Social from the Top
2011
•5% of office workers
regular social users
•5,000 visitors total
2012
•40-50% using social
regularly
•17,000 visitors total
LAUNCH
Leaders Show the Way

Communicate the WHAT, WHY, HOW of Your Social Business Plan
TD Bank Examples
•Executive Social Handbook
•Conversation Guide
•Executive FAQ
Key Messages
•Business Value
•Why they are doing this
•Roadmap
•What questions have been
asked
•Use what tool for whenLAUNCH
Evangelize and Enable

Engage to Fit into Work Style and Culture
• Motivate and engage
with great experiences
• Reverse mentor leaders
with high potentials
• Extend external
participation by engaging
a brand army
• Measure value; focus
on outcomes
ENGAGE

• 53% sales conversion rate
for application process
• 85% conversion rate from
web tools
• 62% call reduction from
online service
Florida Blue Increases Member Engagement across Devices
ENGAGE
Motivate and Engage

Engaging with gamification at IBM
External: SmarterCities “CityOne”
Internal: SimArchitect
ENGAGE
Motivate and Engage

Educate non-social leaders and raise profile of high potential
employees
The front-line,
social
employee
How can I more
effectively help
change the way we
work in IBM?
Why are we not
better at using
technology in a
business setting?
How do I
communicate
effectively with
my team?
Is this
private or
business?
Should I use a
wiki, blog,
community…?
The business
leader,
executive
How do I
communicate
effectively with
leadership?
Is Facebook
really for
me?
How about
LinkedIn? I get
so many requests
all the time!
ENGAGE
Reverse Mentor Your Leaders

Raising “Digital IBMers” as a Brand Army
Goals
•Capture Thought
Leadership
•Remove traditional barriers
to innovation
•Provide Business Value to
our customers
ENGAGE
Raise an Internal Brand Army

Leveraging Social Metrics and Analytics to Transform Employee
Engagement
Real-time awareness of organization’s "pulse"
• Understand employee
opinions
• Internal and external
social
• Employees have more
“voice”
ENGAGE
Show Metrics & Value

High-Level Social Business Maturity Model

© 2013 IBM Corporation
alan.hamilton@uk.ibm.com
@alanghamilton
www.slideshare.net/alanghamilton
about.me/alanghamilton
alanghamilton.com
Social Business Value and Adoption Consultant
Worldwide ICS SWAT Team
UK, Ireland & Nordics
http://slidesha.re/11xIlwt

IBM Finland Social Business Presentation 2013

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