Social Media and ROI: Why use-cases are more compelling than Excel sheets; RIP 4 ROI

Social media and ROI: why use-cases are more compelling than excel sheets? Presentation at the “Enterprise Social 2.0: RIP or ROI?” Summit, Amsterdam 2010 Assoc. Prof. Dr. Michael Heiss Vice President for Knowledge, Innovation, Technology Siemens IT Solutions and Services, Solution Development and Engineering (SDE)

Main Message: RIP 4 ROI
RIP 4 ROI R est i n P eace for R eturn o n I nvest

How to convince the CxO about the ROI of social media?
TechnoWeb 2.0 and the concept to minimize the costs and maximize the business benefit
Balanced Scorecard of TechnoWeb 2.0: choosing the right KPIs to measure performance
Use-Cases where nobody asks about ROI
Conclusion
Agenda

„ All“ business plans look the same... 3 years time earnings

...and one year later, too ;-) again 3 years time earnings 4 years 1 year Why should CEOs trust such business plans?

A gut-feeling for ROI helps to convince the CxO but is not sufficient to get their O.K.
Trend setting: 31,6 % of TechnoWeb members are already in Siemens top priority trends (analysis FY08/09).
Early/fast identification: Significant Improvement regarding availability/visibility of new technologies.
Innovation: TechnoWeb members have a 7 times higher probability of a successful innovation idea.
Cost reduction: 0‘4 Mio €* in FY08/09 could be saved only by the TechnoWeb urgent requests.
Business impact *At this time TechnoWeb was operating only in one Siemens division and the yearly operation costs was 0‘1 Mio € they want to feel a demand by the operative units Invest: 0’1 Mio € Benefit: 0’4 Mio € ROI > 300%

Vision of an cross-divisional networked Enterprise 2.0 Page Source: Social Network Analyzes at Siemens IT Solution and Services SDE „ Who has helped you in your professional work during the last 12 month?“

Conclusion
Agenda

The elevator pitch of „What is TechnoWeb 2.0?“ 1) Do no t expect to find answers directly in TechnoWeb, but expect to find the experts who know the answer! TechnoWeb is a unique routing engine to find people 1) who know answers to your questions. . There are a lot of other features supporting the business. Only Pre-requisite is to join a network once 2) 2) High activity level not necessary.

The main idea of TechnoWeb 2.0 : identify implicit knowledge via the activity stream of the experts activity stream visible limited access data privacy not visible lower accessibility higher accessibility higher business value lower business value identifiable ...in other words: RIP 4 ROI , Gerhard Käfer

How does TechnoWeb 2.0 work? Everybody may initiate or join a network Personalized dashboard (incl. activity stream of joined networks) Network pages, with member list, partner network list, activity stream Public profile pages of each user (incl. activity steam ) with news and RSS-feeds Urgent request + Tag /Technology page + Search page + integration of Sharepoints,wikis, blogs... Open to all Siemens employees

Conclusion
Agenda

RIP 4 ROI: the overall ROI is not honestly measurable but has a lot of indicators costs Business Development, Requirements Engineering, Development, Operation in € invest attract boost (RIP) win (ROI) development # of change requests solved understand use-cases # of use-cases from use-case workshops become network member # of network memberships connect networks # of partner networks offer services # of offered services increase activities sum of # of news, # of comments, # of taggings, # of micro-blog-posts business benefit # of „thanks“-feedbacks, # of „I like it“ passive benefit # of memberships in active networks answered urgent requests # of urgent requests, Ø# of comments, Ø time of first response join TechnoWeb # of new users awareness # of presentations, publications, awareness measures cross-division interaction Ø # of divisions in networks Driver Tree for the TechnoWeb Balanced Score Card initiate new networks # of new networks

Conclusion
Agenda

Use-Case Cloud of TechnoWeb: ( in green: TechnoWeb as routing machine – connecting people)
Result of use-case study during the pilot phase. The size represents the frequency/significance**.
technology decision support (evaluation finder) expert finder personal career management awareness promotion for new technologies/methods I know about a technology which might be important for Siemens Integration of countries share practices Internal promotion of offerings (incl. long tail) Urgent Request tender support trend monitoring innovation idea maturing* integration of new acquisitions Share customer experience Share supplier experience Has anybody experience with…? forward relevant white paper forward event invitation just-in-time re-use of code or concepts review technology transfer risk minimization fire brigade training on the job cross selling technology breeding checking business relevance avoiding double-work one offer to the customer improved search results (emerging structure) training alumni groups* * Emerging use-case: not planned to be a use-case ** estimated driving cross-sector initiatives

Concrete Example for business impact of TechnoWeb A customer problem with an Oracle database (Bitmap Index) could be solved via urgent request by 3 people from different countries and different organizational units within a couple of hours Within a project, expertise regarding a millimeter precise localization application by RFID was needed. No one at Healthcare has experience in this field. Via TechnoWeb 2.0 and in the network RFID a couple of important open questions could be answered. The traffic agency of California asks CT Princeton for a cooperation with Siemens regarding car-to-car technology . The request was forwarded to the Austrian experts of the car- 2- X TechnoWeb network who at least made a deal about a cooperation. Solve urgent customer problem Identify know how Generate new business The few days in TechnoWeb 2.0 and in the network RFID have revealed to be already very fruitful. I exchanged a lot of emails and telephone calls through Germany and Austria and could clarify a couple of important open questions … I would like to thank all of you for helping me. My TechnoWeb 2.0 experience is fantastic and to be honest I didn't expect to find a solution so fast! This is a great tool that was missing…. Thanks to the colleagues in Princeton we got the big chance to have a foot in the door of the US car-2-X market. With our network profile in TechnoWeb 2.0 we can be found very easily. , Gerhard Käfer

Use-Case 1: Cross selling
Conclusion
Agenda

The traffic agency of California asks for a cooperation with Siemens for car-to-X communication

Tamer and Justinian from CT Princeton do not know about car-to-X communication within Siemens and deny the request.

2 months later Tamer and Justinian attend a conference in USA and meet Herbert from CT Vienna 2 Months later Tamer and Justinian meet Herbert , a colleague from Vienna at a conference in USA. In a coffee break they are talking about new developments, and by the way about car-to-X communication. Herbert tells Tamer and Justinian that CT Vienna offers a complete software based car2car/ Infrastructure communication. , Susanne Mörl

Back in California, Tamer contacts the traffic agency in California and makes the deal to cooperate in car-to-X communication; several other deals followed .

Existing network in TechnoWeb Herbert is co-moderator offering

Use-Case 2: Urgent Request
Conclusion
Agenda

Real Example – Urgent Request from SIS Greece Greece, 20.10.09, 16:22 GMT+1 Plz Help! ORACLE BITMAP INDEX CBO I am facing a problem in the customer's PROD database (ORACLE 10g). This problem is not reproduced in our test environment. Any help is highly appreciated. , Susanne Mörl

First answer after 49 min from CT Germany Germany, 20.10.09, 17:11 GMT+1 Hi, When you are not satisfied with the executation plan you could convince oracle to utilze some other index via sql hints. something like … , Susanne Mörl

The answer does not work in my case Hello, thank you very much for your prompt reply! You are right, with oracle hints one can alter the execution plan. Unfortunately, the query is automatically generated from Business Objects, thus have no way to introduce the hint. Greece, 21.10.09, 09:10 GMT+1 , Susanne Mörl

Second answer after 17h from SIS Austria Austria, 21.10.09, 09:41 GMT+1 Workaround: Disable bitmap full index scan using event 10116 . This issue is fixed in 11.2 (Future Release) 10.2.0.4 (Server Patch Set) 11.1.0.7 (Server Patch Set) , Susanne Mörl

18h later the customer problem is solved Greece, 21.10.09, 10:29 GMT+1 Thank you very much for pointing this bug (6694548) out! I already asked the customer to upgrade to oracle 10.2.0.4. When they will be ready, I will check if the issue is resolved and post my results here for future reference. Once again I would like to thank all of you for helping me. My TechnoWeb2 experience is fantastic and to be honest I didn't expect to find a solution so fast ! This is a great tool that was missing from SIS. , Susanne Mörl

Use-Case 3: cross sector cooperation
Conclusion
Agenda

Concrete Example – Search for Experts Within my project activities in medical imaging I need to check some important questions related to a millimeter precise localization application by RFID . No one here at Healthcare has experience in this field. Let’s ask the TechnoWeb RFID community. TechnoWeb Network - RFID , Fabrizio De Pasquale Scientific Staff @ Health Imaging Angiography, Innovative Navigation Concepts

Concrete Example – Search for Experts Within two days , SIS colleagues who have experience on a similar application offer their expertise , Fabrizio De Pasquale

Concrete Example – Search for Experts The few days in TechnoWeb 2.0 and in the network RFID have revealed to be already very fruitful. I exchanged a lot of emails and telephone calls through Germany and Austria and could clarify a couple of important open questions. cross-sector business contact is established SIS D PRO SCM RFID , Fabrizio De Pasquale

Conclusion
Agenda

Conclusion
You need a pilot phase . During this pilot phase you can analyze the use-cases which support the business.
Some use-cases emerge from applying the social media tool and were not planned to be use-cases before.
Use-case workshops help to involve the middle management
Use-cases are more compelling than ROI -computations because
the business benefit is not honestly measurable , but
has a lot of indicators
and... (see next page)

RIP 4 ROI: Activate the knowledge which is resting in peace Siemens IT Solutions and Services SDE KIT A-1101 Vienna, Gudrunstr. 11 Phone +43-5-1707-46560 Twitter: http://twitter.com/heisss Dr. Michael Heiss TechnoWeb 2.0 is an initiative of the Siemens Chief Technology Office

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Social Media and ROI: Why use-cases are more compelling than Excel sheets; RIP 4 ROI

by Michael Heiss on Jan 19, 2010

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Social Media and ROI: Why use-cases are more compelling than Excel sheets; RIP 4 ROI — Presentation Transcript