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NZ Software Association

     Collaboration and
     Social Networking
Video: Time to Think
Agenda
•   Introduction
•   Web 2.0
•   Industry
•   How Many friends?
•   IBM Social Networking
•   Business Value
•   Futures
•   Coffee?
Personal Social Networking
        “Web 2.0”
Software
      Technical         New
      Sales           Challenge

                     Commitment

Influence
Knowledge    Peopl
               e

Reputation            @Cattail
Marketing
                      Web 2.0
Influence
Industry Verticals


                                Web 2.0
                                Solution




     Education              Media               Telco     Manufacturing




 Web 2.0         Web 2.0             Web 2.0            Web 2.0
 Solution        Solution            Solution           Solution
Changing the Game: Goldcorp Inc


 • Yr2000, Strikes, debt,   • 100 targets identified
   high production costs,   • 80%+ yielded substantial
   terminated mining          gold
   operations               • 8 million ounces = $3bn
                            • $100 invested in 1993
 • CEO Rob McEwen             would be $3000 today
   “Goldcorp Challenge”
   $575,000 prize

 • Exposed 400Mb 55,000
   acre property of
   Geological data to the
   web
Changing the Game: Lego

 •   Mindstorms was 4 years old, hard to use
     kids, 40% of users were adults

 •   Engaged 4 enthusiasts

 •   User Panel - Ideas on new sensors,
     redesigned input ports, and stabilized
     firmware

 •   Contributed for free
     (11 months)

 •   Outsourced innovation

 •   Allows the code to hacked and modified

 •   Mindstorm sells 40,000 units a year at
     $199 a pop -- with no advertising -- and
     has become Lego's all-time best-selling
     product
           •http://www.wired.com/culture/lifestyle/news/2006/01/69946
Video: How many friends do you have?
Business benefits


                    • Find hidden expertise
                    • Reduce time to find
                      and access
                      knowledge sources
                    • Reduce email and
                      telephone usage
How do we calculate the business value
of Social Networking over time?



        Critical Business Process (ROI)
        Collaboration Business Process
        Contribution
Return On Contribution is a ratio of
benefit divided by cost
                                      Benefit
    Return on Contribution (ROC) =
                                       Cost

   *No direct monetary costs the metric is therefore based on people
   *Assume employees make appropriate and strategic use of available
   collaborative resources


                                          Number of people who
                                          benefit from a resource

     Return on Contribution (ROC) =
                                       Number of people who create
                                       or contribute to that resource
An example: Blogging
(Blogging within Lotus Connections)


 Measure                          Blogging
 Consumers              10896
 Blog entries -         4213
 Originators
 Return on Contribution 2.59
 (Consumers)
                                     Consumers         10896
    Return on Contribution (ROC) =                 =           = 2.59
                                     Originators       4213

    * Some consumers may also be originators
What does the number 2.59 mean?




  Blogging-originator   2.59 consumers benefit
  creates a new entry   from the work of each
                        new blog entry
Shows the up-take of a Social Networking
application – Growth in participation




                           Growth in
                           participation




                 Stable usage
Future
Virtual Worlds: SecondLife and OpenSIM
3D Chat: IMVU
Metaverse: Gaming
Metaverse: Training
Thank you
     Think
Chris Sparshott
sparkbouy@gmail.com

Portfolio
http://www.slideshare.net/sparkbouy/slideshows

IBM
chris_sparshott@nz.ibm.com

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New Zealand Software Association

  • 1. NZ Software Association Collaboration and Social Networking
  • 3. Agenda • Introduction • Web 2.0 • Industry • How Many friends? • IBM Social Networking • Business Value • Futures • Coffee?
  • 5. Software Technical New Sales Challenge Commitment Influence Knowledge Peopl e Reputation @Cattail Marketing Web 2.0 Influence
  • 6. Industry Verticals Web 2.0 Solution Education Media Telco Manufacturing Web 2.0 Web 2.0 Web 2.0 Web 2.0 Solution Solution Solution Solution
  • 7. Changing the Game: Goldcorp Inc • Yr2000, Strikes, debt, • 100 targets identified high production costs, • 80%+ yielded substantial terminated mining gold operations • 8 million ounces = $3bn • $100 invested in 1993 • CEO Rob McEwen would be $3000 today “Goldcorp Challenge” $575,000 prize • Exposed 400Mb 55,000 acre property of Geological data to the web
  • 8. Changing the Game: Lego • Mindstorms was 4 years old, hard to use kids, 40% of users were adults • Engaged 4 enthusiasts • User Panel - Ideas on new sensors, redesigned input ports, and stabilized firmware • Contributed for free (11 months) • Outsourced innovation • Allows the code to hacked and modified • Mindstorm sells 40,000 units a year at $199 a pop -- with no advertising -- and has become Lego's all-time best-selling product •http://www.wired.com/culture/lifestyle/news/2006/01/69946
  • 9. Video: How many friends do you have?
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23. Business benefits • Find hidden expertise • Reduce time to find and access knowledge sources • Reduce email and telephone usage
  • 24. How do we calculate the business value of Social Networking over time? Critical Business Process (ROI) Collaboration Business Process Contribution
  • 25. Return On Contribution is a ratio of benefit divided by cost Benefit Return on Contribution (ROC) = Cost *No direct monetary costs the metric is therefore based on people *Assume employees make appropriate and strategic use of available collaborative resources Number of people who benefit from a resource Return on Contribution (ROC) = Number of people who create or contribute to that resource
  • 26. An example: Blogging (Blogging within Lotus Connections) Measure Blogging Consumers 10896 Blog entries - 4213 Originators Return on Contribution 2.59 (Consumers) Consumers 10896 Return on Contribution (ROC) = = = 2.59 Originators 4213 * Some consumers may also be originators
  • 27. What does the number 2.59 mean? Blogging-originator 2.59 consumers benefit creates a new entry from the work of each new blog entry
  • 28. Shows the up-take of a Social Networking application – Growth in participation Growth in participation Stable usage
  • 34. Thank you Think Chris Sparshott sparkbouy@gmail.com Portfolio http://www.slideshare.net/sparkbouy/slideshows IBM chris_sparshott@nz.ibm.com