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Socially Synergistic Enterprises
the human side of the smarter planet


Balancing Internal and External Collaboration to Improve Innovation




                                           Marcel Baron


                                           10 June 2011


                                           5th Annual
                                           New Product Development Strategies
© 2011 IBM Corporation
© 2011 IBM Corporation
Team-Based Management

Integrated Product Development Team Relationships




                                                                    Functional Management
        Investment Review Board (IRB)
        *May not exist in specific Brand


        Integrated Portfolio
        Management Team (IPMT)


   Project Development Team
   (PDT)



        DCT/OT &
        functional teams




    4                                      © 2011 IBM Corporation
IBM – Integrated Product Development




                                       © 2011 IBM Corporation
Integrated Product Development (IPD) Overview

                                                         Integrated Portfolio Management Team (IPMT)


IBM Marketing Approach:
  Market Information
                                                  2.0 Develop/ Manage    3.0 Plan/Manage                                5.0 Execute
                           1.0 Understand the                                                 4.0 Plan and
                                                  Strategy &             Offerings/                                     Programs/
                           Marketplace                                                        Manage Programs
  Customer Feedback                               Positioning            Solutions                                      Measure


                                                                            IPMT
  Competitor Information
                                                                           Sponsor


  Technology Trends        Project Proposals                              C                                                     Products
                                                                          O                                                     Solutions
                           Strategy                                       N                                                     Profit
                           Marketplace insights                           T
                                                       Concept    Plan    R     Develop & Qualify   Launch     Life-cycle       Satisfied
                           Opportunity
  Current Portfolio        Customer Targets
                                                                          A
                                                                          C
                                                                                                                                Customers
                           Value Proposition                              T
                           Messaging




                                                              Concept    Plan                   Availability            End-of-Life
                                                              DCP        DCP                    DCP                     DCP

                                                                  Project Development Team (PDT)


    6                                                                                                             © 2011 IBM Corporation
H3 investigation feeds H2 growth and finally H1 exploitation




                                                   © 2011 IBM Corporation
EBO investment decision criteria should evaluate market,
technology, business, and organization attractiveness


     Market Size
     Market Trends
     Customer Pull
                            Example
    Market Attractiveness (%)                                  Technology Attractiveness (%)
                                                                 Technology Maturity
                                                                 Technology Trends
                                                                 Standards & Architectures
     Competitive Position                                        Intellectual Property
     Strategic Control Points                                    Solution Positioning



    Business Attractiveness (%)                                Organization Attractiveness (%)
     Business Model (Value Chain)                               IBM Strategy Fit
     Differential Advantage / Value                             EBO Strategy Fit
      Proposition                                               Core Competencies/Skills
     Value Capture/Profit Model                                 Technology Innovator
     "Game Changer" Potential                                    Capability
     Market Timing                                              Business Unit Receptivity

     % weighting may be applied, if needed

                                    Source: Compilation of IBM's EBO Community of Practice ideas and practices


                                                                                                           © 2011 IBM Corporation
© 2011 IBM Corporation
Innovation @ IBM




         https://www.collaborationjam.com/

                                             © 2011 IBM Corporation
© 2011 IBM Corporation
WHERE ARE YOU IN BECOMING A SOCIAL BUSINESS ?




                                       © 2011 IBM Corporation
Socially Synergistic Enterprise Solutions:
  The Human Side of the Smarter Planet

Socially synergistic enterprise solutions
let businesses and other organizations
combine people, data, and analytics in new
ways to achieve revenue growth, discover
opportunities, enhance customer and partner
relationships, improve resiliency and
efficiency, and achieve improved outcomes.

These solutions will be facilitated by a framework
and consumable components to effectively
integrate computation with human cognition
and action.




                                                     © 2011 IBM Corporation
Convergence of Social and Analytic Technologies Transform the
    Way Businesses Operate
                       Socially Synergistic Enterprise Solutions
               New top-line opportunities, better relationships with customers and partners,
                         enhanced talent pool, increased resiliency and efficiency


                                                                                                 Individuals
                                                                                               Teams

Analytics                                                                   Social             Organizations

                                                                                            Society


                                              Business
   Data aggregation                          Process                      Customer Sentiment
   Smart filtering                        Transformation                  Unmet Needs
   Meaning extraction                                                     Talent Discovery
   Consumable analytics                                                   Reasoning and Decision Support
   Process orchestration                                                  Crowdsensing, Crowdsourcing
   Stream processing                                                      Teaming, Incentives, Motivation

                                                 Data
            Physical                                                                  Social
                                              Enterprise
       Sensors & Streams                                                    Data from and about People

                                                                                           © 2011 IBM Corporation
Adoption of Social Tools is Increasing Rapidly
Growth in Adult Usage of Social Network Sites, 2005-2009
                                                                                  Companies plan to increase spending on social despite recession



                  Public                                                                                           Enterprise




                                                                              Fortune Global 100 Companies
  US Mobile Subscribers
  Accessing Social Sites                 Companies with ...                       Twitter Accounts               Facebook Fan Pages               YouTube Accounts
          (Thousands)                    65%
                                                  54%      50%                        72% 71%                            69%
                                                                              65%                        67%                                              59%
          Jan-09   Jan-10   Change                                                                               54%           52%                              52%
                                                                                                                                                 50%
                                                                    33%                                                              40%
                                                                                                  40%
Facebook 11,874 25,137       112%                                                                                                          33%                        35% 33%

MySpace   12,338 11,439       -7%
                                         Twitter Facebook YouTube Corporate
                                                                              Total   US   Europe Asia   LatAm   Total   US Europe Asia LatAm    Total    US Europe Asia LatAm
Twitter   1,051    4,700     347%       Accounts Fan Pages Channels Blogs


             Source:comScore MobiLens                                                                                                                    Source:Burston-Marsteller

                                                                                                                                                   © 2011 IBM Corporation
Social Technologies Used in Point Processes


   Social network-based advertising            Social computing and community forums
     achieved 70% ROI, outpacing                lower customer and partner support costs.        Location based social incentives
       TV and Online marketing                One question viewed 37k times, saving ~$70k.

            Promotion                                          Support                                    Promotion




   Listening to buzz on Youtube and                 Crowdsourcing new product                    Crowdsourcing new features.
Facebook led to creation of High Fructose          and promotion ideas increases               Reports $3M in revenue using Twitter
     Corn Syrup-free Hunts Ketchup                        customer loyalty                         to notify customers of deals

              Marketing                                       Marketing                            Marketing, Promotion




  Connections-based employee social
                                                                                                       Sold 2.5 million kits
 collaboration with over 500 cross-silo
                                                                                                     leveraging social and
 communities. One generated 118 ideas       Automotive industry exploring integrating social           game techniques
          being implemented.                    capabilities to enhance car experience

               Internal                                 Integrated Offering                         Integrated Offering

     16                                                                                                         © 2011 IBM Corporation
Customer Care and Insight
               Transforming how a Company Manages its Brands
                                                                                                    30,000+   2 billion+

 Large consumer                         Issue discovered in enterprise
                                        sales and market-basket data
                                                                                        100000+
                                                                                        discussio
                                                                                                    news
                                                                                                    feeds
                                                                                                              blog
                                                                                                              postings
                                                                                                                           twitter
                                                                                                                           activity

 product company                        Losing share to a competitor in a key
                                                                                        n forums
                                                                                                                   topic identification
                                                                                                                   sentiment and brand
                                        market
                                                                                                                   association analysis




                                        Correlation and analysis of external
                                        (message boards, blogs, newsfeeds,
                                        tweets) and internal (customer calls,
                                        sales, ad spend, KPIs, etc.) to identify root
                                        cause


Marketing Managers and other employees diagnose issue, develop solutions,
make go/no -go decisions. Collaborative Reasoning decision tools structure
process, populate with relevant data, support what-if predictive analyses.
Question arises on whether shelf placement has changed.



Query broadcast to supermarket field reps to crowdsource quick response,
which is automatically tabulated, comments analyzed, insights extracted and fed
back into decision space.

     IBM DIFFERENTIATOR: Ability to integrate and analyze internal enterprise and external data.
                                                                                                                     © 2011 IBM Corporation
Research Asset: Voice of the Customer Analytics
Managed Service Providing Actionable Marketing Insights
                                                      Enterprise Contact Points
       Customer
                                      Branch office          Call Center        Self Service               IVR




                                                               Agent                 Web

                                                         Unstructured                          Structured
                             Structured
               Data                                  Call logs, Transcripts                 Customer/Product
                             Agent Data
                                                       Emails, Surveys                      Transaction Data
                                                                                                                                Enterprise
                                                                                                                                 products
                                                                                                                               and services
         Analytics            Integrate and Analyze Structured and Unstructured Data



                          Customer Intelligence                                            Dissatisfaction Drivers
        Insights                                              Agent Performance
                          Process Understanding                                            Sales Drivers


“… helped us improve our operational efficiency and customer                  “…given us a tremendous differentiation in the market place
satisfaction. This enables us to take swift pro-active mitigation             to realize significant business impact. This really provides us
action to improve the customer’s satisfaction and help our client             an edge over many of our competitors who simply don‘t have
retain the customer… “                                                        the technology to deal with unstructured data..”
Suppiah Karuppiah, Director and Senior PE, GM Cars Account                    Bill Payne, VP, CRM and Industries, GPS

                                                                                                                             © 2011 IBM Corporation
Current Project: Visual Backchannel Monitoring Twitter activity

                                   Prototype: used at Lotusphere,
                                   USAID WorldJam, IOD, VizWeek 2010, etc.




Trending terms on twitter fed to
 internal analytics to recognize
     problem and automatically
   create team for quick action




                                                                             © 2011 IBM Corporation
Workforce Optimization
                    Transforming how IBM Optimizes its Services Workforce
 Sourcing Talent                              Developing Talent                        Retaining Talent                            Managing Workforce
 Find and acquire talent in the right place   Grow employees through traditional and   Retain desired talent through innovative    Improve workforce productivity &
 and time to meet business objectives         collaborative learning and development   performance and compensation initiatives    efficiency




1. Project needs talent                                                    skills
                                                                                                                                      Skill
                                                                           performance in similar projects                          Modeling
2. Determine best mode of work:                                            experience
   individual, team, crowdsource                                                                                                   Outcome
                                                                           interests                                              Repositories

3. Find best available people                                              who has worked well with whom                          Collaboration
   and teams based on range of                                             motivations and incentives
                                                                                                                                       logs
   organizational and personal
                                                                                                                                     Social
   goals and context                                                       personal development goals                               Analysis
                                                                           organizational future needs
4. Orchestrate, support and                                                                                                       Development
                                                                           and development goals                                     Goals
   analyze tacit work



                                                                                Collaborative Supply and
                                                                                  Demand Prediction


                                                                                                                                             © 2011 IBM Corporation
21   © 2011 IBM Corporation
© 2011 IBM Corporation

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Socially synergistic enterprises 10 june m. baron

  • 1. Socially Synergistic Enterprises the human side of the smarter planet Balancing Internal and External Collaboration to Improve Innovation Marcel Baron 10 June 2011 5th Annual New Product Development Strategies
  • 2. © 2011 IBM Corporation
  • 3. © 2011 IBM Corporation
  • 4. Team-Based Management Integrated Product Development Team Relationships Functional Management Investment Review Board (IRB) *May not exist in specific Brand Integrated Portfolio Management Team (IPMT) Project Development Team (PDT) DCT/OT & functional teams 4 © 2011 IBM Corporation
  • 5. IBM – Integrated Product Development © 2011 IBM Corporation
  • 6. Integrated Product Development (IPD) Overview Integrated Portfolio Management Team (IPMT) IBM Marketing Approach: Market Information 2.0 Develop/ Manage 3.0 Plan/Manage 5.0 Execute 1.0 Understand the 4.0 Plan and Strategy & Offerings/ Programs/ Marketplace Manage Programs Customer Feedback Positioning Solutions Measure IPMT Competitor Information Sponsor Technology Trends Project Proposals C Products O Solutions Strategy N Profit Marketplace insights T Concept Plan R Develop & Qualify Launch Life-cycle Satisfied Opportunity Current Portfolio Customer Targets A C Customers Value Proposition T Messaging Concept Plan Availability End-of-Life DCP DCP DCP DCP Project Development Team (PDT) 6 © 2011 IBM Corporation
  • 7. H3 investigation feeds H2 growth and finally H1 exploitation © 2011 IBM Corporation
  • 8. EBO investment decision criteria should evaluate market, technology, business, and organization attractiveness Market Size Market Trends Customer Pull Example Market Attractiveness (%) Technology Attractiveness (%) Technology Maturity Technology Trends Standards & Architectures Competitive Position Intellectual Property Strategic Control Points Solution Positioning Business Attractiveness (%) Organization Attractiveness (%) Business Model (Value Chain) IBM Strategy Fit Differential Advantage / Value EBO Strategy Fit Proposition Core Competencies/Skills Value Capture/Profit Model Technology Innovator "Game Changer" Potential Capability Market Timing Business Unit Receptivity % weighting may be applied, if needed Source: Compilation of IBM's EBO Community of Practice ideas and practices © 2011 IBM Corporation
  • 9. © 2011 IBM Corporation
  • 10. Innovation @ IBM https://www.collaborationjam.com/ © 2011 IBM Corporation
  • 11. © 2011 IBM Corporation
  • 12. WHERE ARE YOU IN BECOMING A SOCIAL BUSINESS ? © 2011 IBM Corporation
  • 13. Socially Synergistic Enterprise Solutions: The Human Side of the Smarter Planet Socially synergistic enterprise solutions let businesses and other organizations combine people, data, and analytics in new ways to achieve revenue growth, discover opportunities, enhance customer and partner relationships, improve resiliency and efficiency, and achieve improved outcomes. These solutions will be facilitated by a framework and consumable components to effectively integrate computation with human cognition and action. © 2011 IBM Corporation
  • 14. Convergence of Social and Analytic Technologies Transform the Way Businesses Operate Socially Synergistic Enterprise Solutions New top-line opportunities, better relationships with customers and partners, enhanced talent pool, increased resiliency and efficiency Individuals Teams Analytics Social Organizations Society Business  Data aggregation Process  Customer Sentiment  Smart filtering Transformation  Unmet Needs  Meaning extraction  Talent Discovery  Consumable analytics  Reasoning and Decision Support  Process orchestration  Crowdsensing, Crowdsourcing  Stream processing  Teaming, Incentives, Motivation Data Physical Social Enterprise Sensors & Streams Data from and about People © 2011 IBM Corporation
  • 15. Adoption of Social Tools is Increasing Rapidly Growth in Adult Usage of Social Network Sites, 2005-2009 Companies plan to increase spending on social despite recession Public Enterprise Fortune Global 100 Companies US Mobile Subscribers Accessing Social Sites Companies with ... Twitter Accounts Facebook Fan Pages YouTube Accounts (Thousands) 65% 54% 50% 72% 71% 69% 65% 67% 59% Jan-09 Jan-10 Change 54% 52% 52% 50% 33% 40% 40% Facebook 11,874 25,137 112% 33% 35% 33% MySpace 12,338 11,439 -7% Twitter Facebook YouTube Corporate Total US Europe Asia LatAm Total US Europe Asia LatAm Total US Europe Asia LatAm Twitter 1,051 4,700 347% Accounts Fan Pages Channels Blogs Source:comScore MobiLens Source:Burston-Marsteller © 2011 IBM Corporation
  • 16. Social Technologies Used in Point Processes Social network-based advertising Social computing and community forums achieved 70% ROI, outpacing lower customer and partner support costs. Location based social incentives TV and Online marketing One question viewed 37k times, saving ~$70k. Promotion Support Promotion Listening to buzz on Youtube and Crowdsourcing new product Crowdsourcing new features. Facebook led to creation of High Fructose and promotion ideas increases Reports $3M in revenue using Twitter Corn Syrup-free Hunts Ketchup customer loyalty to notify customers of deals Marketing Marketing Marketing, Promotion Connections-based employee social Sold 2.5 million kits collaboration with over 500 cross-silo leveraging social and communities. One generated 118 ideas Automotive industry exploring integrating social game techniques being implemented. capabilities to enhance car experience Internal Integrated Offering Integrated Offering 16 © 2011 IBM Corporation
  • 17. Customer Care and Insight Transforming how a Company Manages its Brands 30,000+ 2 billion+ Large consumer Issue discovered in enterprise sales and market-basket data 100000+ discussio news feeds blog postings twitter activity product company Losing share to a competitor in a key n forums topic identification sentiment and brand market association analysis Correlation and analysis of external (message boards, blogs, newsfeeds, tweets) and internal (customer calls, sales, ad spend, KPIs, etc.) to identify root cause Marketing Managers and other employees diagnose issue, develop solutions, make go/no -go decisions. Collaborative Reasoning decision tools structure process, populate with relevant data, support what-if predictive analyses. Question arises on whether shelf placement has changed. Query broadcast to supermarket field reps to crowdsource quick response, which is automatically tabulated, comments analyzed, insights extracted and fed back into decision space. IBM DIFFERENTIATOR: Ability to integrate and analyze internal enterprise and external data. © 2011 IBM Corporation
  • 18. Research Asset: Voice of the Customer Analytics Managed Service Providing Actionable Marketing Insights Enterprise Contact Points Customer Branch office Call Center Self Service IVR Agent Web Unstructured Structured Structured Data Call logs, Transcripts Customer/Product Agent Data Emails, Surveys Transaction Data Enterprise products and services Analytics Integrate and Analyze Structured and Unstructured Data  Customer Intelligence  Dissatisfaction Drivers Insights  Agent Performance  Process Understanding  Sales Drivers “… helped us improve our operational efficiency and customer “…given us a tremendous differentiation in the market place satisfaction. This enables us to take swift pro-active mitigation to realize significant business impact. This really provides us action to improve the customer’s satisfaction and help our client an edge over many of our competitors who simply don‘t have retain the customer… “ the technology to deal with unstructured data..” Suppiah Karuppiah, Director and Senior PE, GM Cars Account Bill Payne, VP, CRM and Industries, GPS © 2011 IBM Corporation
  • 19. Current Project: Visual Backchannel Monitoring Twitter activity Prototype: used at Lotusphere, USAID WorldJam, IOD, VizWeek 2010, etc. Trending terms on twitter fed to internal analytics to recognize problem and automatically create team for quick action © 2011 IBM Corporation
  • 20. Workforce Optimization Transforming how IBM Optimizes its Services Workforce Sourcing Talent Developing Talent Retaining Talent Managing Workforce Find and acquire talent in the right place Grow employees through traditional and Retain desired talent through innovative Improve workforce productivity & and time to meet business objectives collaborative learning and development performance and compensation initiatives efficiency 1. Project needs talent skills Skill performance in similar projects Modeling 2. Determine best mode of work: experience individual, team, crowdsource Outcome interests Repositories 3. Find best available people who has worked well with whom Collaboration and teams based on range of motivations and incentives logs organizational and personal Social goals and context personal development goals Analysis organizational future needs 4. Orchestrate, support and Development and development goals Goals analyze tacit work Collaborative Supply and Demand Prediction © 2011 IBM Corporation
  • 21. 21 © 2011 IBM Corporation
  • 22. © 2011 IBM Corporation