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Growing Interest in Cloud Based Digital Experiences -- An IDC and IBM Digital Experience webinar 3.16.16

As marketing, commerce, and customer service continue to shift to digital channels — and as an increasingly greater share of an organization's revenue comes from digital business — organizations have become acutely aware of the need for an enterprise digital experience platform. Such a platform enables them to quickly and cost effectively create, manage, and deliver cross-channel, cross-device digital experiences to their various constituents; measure the effectiveness of the experiences; and optimize the experiences based on analytical insights.

Organizations are increasingly turning to platforms such as IBM Digital Experience on Cloud to meet today's digital business requirements. As IDC's research has shown, organizations that use IBM Digital Experience have realized significant business benefits, including increased revenue and quicker time to market, reduced costs and improved staff productivity, and increased customer and employee engagement.

Join us in this live webinar to:
1. Hear directly from IDC on their latest IBM Digital Experience on Cloud Business Valuation report
2. See live demonstrations of the latest features that IBM Digital Experience on Cloud solutions can provide to companies looking to capitalize on their digital transformations

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Growing Interest in Cloud Based Digital Experiences -- An IDC and IBM Digital Experience webinar 3.16.16

  1. 1. IBM Digital Experience on Cloud: A Quick Overview
  2. 2. Agenda & Speakers  Introduction • Gary Dolsen, IBM, VP Digital Experience, IBM Software Group  Review of IDC Findings • Melissa Webster, IDC, Program Vice President, Content and Digital Media Technologies • Randy Perry, IDC, Vice President, Business Value Consulting  Portfolio Product Overview and Demo • Mahendra Pingale, IBM, Principal Offering Manager – Digital Experience • Bryan Daniel, IBM, Senior Technical Specialist – Digital Experience  Closing / Q&A • Gary Dolsen
  3. 3. IDC Findings
  4. 4. Demonstrating the Business Value of IBM Digital Experience on Cloud Randy Perry VP, Business Value Consulting Melissa Webster VP, Content & Digital Media
  6. 6. Organizations Increasing DX Spend Q. Over the next 2 years, will your organization’s budget for creating and delivering digital experiences: Increase somewhat 53% Stay about the same 26% Decrease somewhat 1% Decrease significantly 0% Don't know 2% Increase significantly 18% 6 % of respondents n=750; IDC’s Digital Experience Survey 2016.
  7. 7. 0 20 40 60 80 100 Traditional Web Mobile Web for tablet users Mobile Web for smartphone users Social networks or community sites Mobile apps for smartphone users Mobile apps for tablet users Email campaigns Digital signs and kiosks Smart TVs, other 'connected' devices Wearables % of respondents Q. Which of the following channels are priorities for your company/organization for creating and delivering digital customer experiences? 7 Delivering Multi-Channel DX an Imperative n=750; IDC’s Digital Experience Survey 2016.
  8. 8. Cost, TTM, Ease of Use Top Selection Criteria 0 20 40 60 80 100 Cost Quick time to deploy Ease of use/authoring Strong workflow Multi-channel publishing Rich media/video capabilities Multi-site management Integrated eCommerce Create launch sites without IT help Ease of integration/extensibility Community features % of respondents Q. How important are the following capabilities in choosing a WCM solution? 8 n=750; IDC’s Digital Experience Survey 2016.
  9. 9. see significant benefits in leveraging a single solution across all of Web publishing needs – including public facing sites, Intranets, and Extranets 9 n=750; IDC’s Digital Experience Survey 2016. 60% say availability via cloud is an important selection criterion53% Growing Interest in Cloud, Broad- Based Solutions
  10. 10. Digital Experience Continuum 10 Intranets Extranets Web Sites Customers • Authenticated + Anonymous • Integration w/apps, eCommerce, etc. Employees • Authenticated • Integration w/ apps, portal, ECM Partners • Authenticated • Integration w/apps, portal, eCommerce, ECM
  11. 11. Digital Experience Continuum 11 Intranets Extranets Web Sites Common Requirements:  Mobile, social, multichannel  Ease of authoring and publishing for business users  Ease of integration with enterprise apps, eCommerce, Web apps  Ability to build rich, engaging experiences; support for rich media  Analytics/optimization to drive relevance, best next action  Performance, scalability, reliability
  12. 12. IDC’s Business Value Study for IBM 12
  13. 13. Demographics of the study participants 13
  14. 14. Annual Benefits Enhancing business and user productivity accounts for 90% of total benefits 14
  15. 15. 5 Year TCO: Build vs Buy IBM’s solution cost 47% less than building a solution in house $683 $327 $1,359 $895 $665 $288 $726 $328 $187 $69 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 Build IBM Five year costs per user Annual IT support - portal users Annual IT support - portals IT Labor to develop/install Software Hardware Infrastructure 40% IT Labor 57% Overall reduction 47% 15
  16. 16. Time to Market – IBM Digital Experience can go from concept to production in half the time of other solutions Solution Time to Market KPIs Other IBM Advantage Time to design (weeks) 1.98 1.10 44% Time to develop (weeks) 4.20 2.10 60% Time to deploy (weeks) 1.88 .66 65% Total 8.06 3.86 52% 16
  17. 17. User Productivity Benefits The big driver in benefits is creating an environment that increases user productivity by 13% IDC 2013 17 User Productivity Benefits • Faster to market • Reduced errors • Streamline opns • Faster search • Better decisions Increased Collaboration I think they are saving about 10% of their time. They are saving time with the education, and collaboration improvement, and finding the right information at the right time. Integrated data sets Every user is a beneficiary. Externally we use it for our workflow related to financial transaction offerings. Internally there is a process of reimbursement here where you have your phone bill, your travel expenses, and your data expenses. I would say that we have at least a 75% benefit. Self service People are saving a tremendous amount of time. If there’s a call we push it back out, and say - you can see all of this information directly. As customers are getting used to doing that, then the call load is going down. Increased available time by 13% Increased operational output by 11%
  18. 18. User Productivity Reliability, resilience and performance add two days of productivity to each user Reliability KPIs Other IBM Benefit Value Advantage Downtime Hours per Year 36.4 5.0 31.4 86% Service Desk Issues 868.5 647.2 221.3 25% Security - Viral Attacks/Denial of Service 23.1 0 23.1 100% Total hours per Year that users are affected 928.0 652.2 275.8 30% Hours per year per user 19.7 2.8 16.9 86% Annual savings per 100 Users $8,254 18
  19. 19. Business Productivity Benefits - Companies generating revenue from their extranets are realizing an additional $750,000 in revenue from enhanced operations Business Productivity Metrics Operations Productivity Increase 11% Average Annual Benefit per 100 Users $97,090 Revenue Increase $750,000 Operating Margin (Assumed) 20% Net Revenue Benefit (Revenue X Margin) $150,000 Average Annual Benefit per 100 Users $5,604 19 Operating margin is a device that allows us to convert revenue increase (a top line number) into operating profit (a bottom line number) so it can be combined with cost reduction in our ROI analysis. Every $1 of revenue gained is assumed to have $.80 in costs (such as COGS).
  20. 20. Five Year ROI Analysis 5 Year ROI Metrics Per 100 Users Benefits $1.09 Million Investment $.18 Million Net Present Value (NPV) $.9 Million ROI (NPV/Investment) 502% Payback (months) 6.6 Discount factor 12% IBM Digital Experience paid for itself in less than seven months from deployment 20
  21. 21. Additional Benefits from Deploying Multiple Use Cases $17,053 $45,936 $46,037 $50,267 $113,090 $139,602 $79,215 $118,869 $2,226 $7,792 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 Intranets Only Intra/Extra Annual Benefits per 100 Users Business Productivity - Revenue Business Productivity - Operations User Productivity IT Staff Productivity Infrastructure 21
  22. 22. Cloud deployments bring strong improvements to the digital experience 34% 89% 145% 34% 97% 73% 74% 96% Advantages of Cloud over On-premises 22
  24. 24. Essential Guidance  Customers who embrace IBM Digital Experience are realizing a compelling ROI: • Improved business productivity by 11% • Improved user productivity by 13% through enhanced user experience • Reduced TCO by 47% • ROI >500%, payback within 7 months • Total benefits >$300,000 per 100 users, annually  Customers see even greater benefits when they leverage IBM’s solutions across multiple use cases  Mobile, social, ease of integration/portal/eCommerce, rich media/experiences, analytics are IBM strengths 24
  25. 25. Key Questions for Customers  Do you need to develop and deploy engaging digital experiences in less time and respond more quickly to enhancement requests?  Can you integrate existing enterprise applications and data into new experiences and manage the deployment of content and application functionality in a unified way?  Can you customize digital experiences to the extent needed?  Does your deployment model have the flexibility you require?  Are you experiencing significant downtime or system outages — either unplanned or scheduled?  How important is reducing the IT staff time required to support related hardware and software?  How does your current solution stack up when it comes to security, reliability, and scalability? 25
  26. 26. IBM Digital Experience Product 26
  27. 27. IBM Digital Experience on Cloud: A Quick Overview Mahendra Pingale Principal Offering Manager IBM Digital Experience on Cloud / @mkpibm
  28. 28. Designer Developer IBM Digital Experience helps customer experience teams create adaptive, personal and relevant experiences that are managed by the business. Site Owner What is IBM Digital Experience?
  29. 29. Key Pain Points 1. Infrastructure work increases project costs, risks and delivery timelines. 2. Customers face acute deficit of specialized Java EE and middleware admin and operations skills. 3. Enterprise service levels and HA targets can be expensive to attain.
  30. 30. Market-leading IBM Digital Experience platform. Managed and hosted by IBM on robust, private, secure and dependable SoftLayer infrastructure. IBM Digital Experience on Cloud
  31. 31. Focus on delivering great user experiences. Leave operations to IBM. IBM 24/7 SaaS Operations Customer Teams 24/7 MonitoringUp to 99.93% availability SLA Designer Site Owner Developer Daily Backups High Availability includedState of the Art Security Site to Site VPN Regular feature releasesWeb and Telephone Support Client Success Manager Simple themes Theme manager Site Manager Content Management Script Applications Digital Data Connector Extensibility
  32. 32. ROI Considerations • Servers, storage and networking hardware / infrastructure. • Backup hardware and software. • Monitoring hardware and software • DX Software licences. • Supporting software licences (OS, firewall, anti-virus, monitoring, etc). • Middleware operations. • Infrastructure operations. • Installation, configuration, upgrades. • Penetration testing, remediation. Costs avoided • 24/7 IBM operations with worldwide data center coverage. • High availability included • Regular upgrades to deliver new functionality. • No waiting on infrastructure – Get started right away! • Scale up and down to meet planned workload peaks – no need to buy capacity upfront. • Better utilization of people and skills for strategic projects. • No need to hire Java EE and middleware admin skills. Benefits gained ROI of DX on Cloud is usually evaluated in comparison with on-premises deployment. Main considerations are all the costs you would incur to deploy and maintain a system to the same service level. IDC BUSINESS VALUE EXECUTIVE BRIEF “Assessing the Business Value of IBM Digital Experience on Cloud"
  33. 33. Thank You!