Social Media and IT: What IT Needs to Know SPN 209Mark Heid, IBM CognosProgram Director, Social Analytics
Please Note: IBM’s statements regarding its plans, directions, and intent are subject to  change or withdrawal without not...
Agenda    • Social Media’s Impact on Marketing    • Social Media’s Challenge to Marketing    • Using Analytics to Measure ...
Stating the obvious. But it’s morethan Tweeting happy thoughts …                                     4   |   © 2012 IBM Co...
It’s influencing aggregate behavior that’s shaping    demand and our ability to meet and anticipate it      Leverage      ...
The impact cascades beyond Facebook – to brand,reputation, supply and demand    Social media compresses information releva...
Social Frontlines – Converging marketing channels    Marketing:            Damned if they do;                   Damned if ...
The vast majority of CMOs are     underprepared to manage the impact of     key changes in the marketing arena      Underp...
Understanding the Customer and Answering: “Why”                          High-value, dynamic approach                     ...
Social Media Strategy. Fill in the     blanks, please ….                            10   |   © 2012 IBM Corporation10
Fear and opportunity …         What’s the right combination of social media offence and defence?  Protect or engage. Hide ...
Proliferation and ownershipExecution in large part depends on who owns what. In large organizations there is a proliferati...
Understanding goals and readiness for social media        So what are the critical process and performance questions      ...
Linking together social and customer data allows you tomanage marketing consistently across multiple channels             ...
Social Media Strategy … Measuring Impact Consumer Products’ Company’s 4-Point Strategic Plan for Social Media Analytics: 1...
Product brand check…what do customers think about my product?The launch of a permanent mousse coloration product   … achie...
How Do We Measure Process and     Success …. Why Analytics                        17   |   © 2012 IBM Corporation17
Social Media Influence    78%  of consumers trust peer      recommendations Source: August 25, 2009, “The Broad Reach Of S...
Leader: High number of                                             contacts in his/her community          Network         ...
Technologies that Bolster Existing Marketing   Processes to Monetize Social Investments               Analyzing social med...
Social Media Foundation: IBM Cognos Consumer Insight                                •   Enterprise class ability to analyz...
Social Media Analytics and Predictive Analytics     based on January 2009 “The Listening Platform Landscape”              ...
Using social media to identify influence and action                                                         Quantify,     ...
Social Segmentation – Customer example…understanding motivations to drive revenueGlobal consumer goods company created    ...
Global digital content created will increase some 30 times over the next ten years – to 35 zettabytes (IDC)               ...
Where are you in a social maturity curve?                                                              Quantify &         ...
Social Media Readiness – IT Considerations Social media has broader business implications … IT needs to be involved as gua...
Final Thoughts …. • Marketing is going to use social media … • IT can help marketing by helping the CMO and his   team:   ...
Questions?                     Mark Heid    ?             Email:    mheid@us.ibm.com             Twitter:  @mheid         ...
Communities• On-line communities, User Groups, Technical Forums, Blogs,  Social networks, and more   – Find the community ...
Disclaimer      © Copyright IBM Corporation 2010. All rights reserved.      U.S. Government Users Restricted Rights - Use,...
Thank You!     Your Feedback is Important to Us     • Access your personal session survey list and complete via SmartSite ...
33   |   © 2012 IBM Corporation33
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"Social Media and IT - What IT Needs to Know" - Lotusphere 2012

  1. 1. Social Media and IT: What IT Needs to Know SPN 209Mark Heid, IBM CognosProgram Director, Social Analytics
  2. 2. Please Note: IBM’s statements regarding its plans, directions, and intent are subject to change or withdrawal without notice at IBM’s sole discretion. Information regarding potential future products is intended to outline our general product direction and it should not be relied on in making a purchasing decision. The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract. The development, release, and timing of any future features or functionality described for our products remains at our sole discretion. Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the users job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here. 2 | © 2012 IBM Corporation
  3. 3. Agenda • Social Media’s Impact on Marketing • Social Media’s Challenge to Marketing • Using Analytics to Measure and Drive Action from Social Media • Social and Customer Analytics Governance • Summary 3 | © 2012 IBM Corporation3
  4. 4. Stating the obvious. But it’s morethan Tweeting happy thoughts … 4 | © 2012 IBM Corporation4
  5. 5. It’s influencing aggregate behavior that’s shaping demand and our ability to meet and anticipate it Leverage Expect Demand social consistent exactly what Get it now networking and relevant they want or go information elsewhere! 95 million 75% $93 billion Number of tweets sent via Percentage of people who Amount in sales missed due Twitter each day believe companies don’t tell to out of stock inventory the truth in advertisements 5 | © 2012 IBM Corporation5
  6. 6. The impact cascades beyond Facebook – to brand,reputation, supply and demand Social media compresses information relevance and the speed to which we seek to validate it through available communities of interest … forcing business to re- examine their value chains Understand Adapt sourcing Market, sell and Service and anticipate and procurement customers fulfill the right customer based on customer flawlessly, product and service predict and behavior and demand and at the right price, drive needs based optimize supplier time and place customer on customer interactions across loyalty insights across extended value all channels chains 6 | © 2012 IBM Corporation6
  7. 7. Social Frontlines – Converging marketing channels Marketing: Damned if they do; Damned if they don’t Tomorrows CMO Today’s Agenda: Today plus: CMO + Drive consistent interactions across all channels + Steward the complete customer experience Agenda: + Enable information & insight across the business  Understand the market and the customer + Anticipate customer needs  Build awareness and demand + Monitor and harness customer evangelism  Steward the company’s brand experience + Optimize outcomes and return on  Drive brand strategy and execution marketing investment 7 | © 2012 IBM Corporation7
  8. 8. The vast majority of CMOs are underprepared to manage the impact of key changes in the marketing arena Underpreparedness Percent of CMOs reporting underpreparedness 50% Data explosion 71% Social media 68% Growth of channel and device choices 65% Shifting consumer demographics 63% Financial constraints 59% Decreasing brand loyalty 57% Growth market opportunities 56% ROI accountability 56% Customer collaboration and influence 56% Privacy considerations 55% Global outsourcing 54% Regulatory considerations 50% Corporate transparency 47% Source: Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? n=149 to 1141 (n = number of respondents who selected the factor as important) 8 | © 2012 IBM Corporation8
  9. 9. Understanding the Customer and Answering: “Why” High-value, dynamic approach - source of competitive differentiation Interaction data Attitudinal data - E-Mail / chat transcripts -Market Research How? - Call center notes - Web Click-streams Why? -Social Media - In person dialogues Descriptive data Behavioral data - Attributes - Orders Who? What? - Characteristics - Transactions - Self-declared info - Payment history - (Geo)demographics - Usage history “Traditional approach” 9 | © 2012 IBM Corporation
  10. 10. Social Media Strategy. Fill in the blanks, please …. 10 | © 2012 IBM Corporation10
  11. 11. Fear and opportunity … What’s the right combination of social media offence and defence? Protect or engage. Hide and reveal. Much depends on the business model and constellation of constituents that can effect reputation, revenue and relationships. So What’s the Right Balance? Fear Opportunity 11 | © 2012 IBM Corporation
  12. 12. Proliferation and ownershipExecution in large part depends on who owns what. In large organizations there is a proliferation of social media tools of varying degrees of strength and weakness. Nearly one fifth of surveyed organizations don’t have a Only 20% of social media organizations owner of strategy have centralized their social media deployment How to Organize Your Company for Social Media, by Jeremiah K. Owyang, June 24, 2009 12 | © 2012 IBM Corporation
  13. 13. Understanding goals and readiness for social media So what are the critical process and performance questions IT should ask marketing? Questions for Marketing Sponsors What are your objectives for social media? What do you intend to measure? Assess What criteria will you be assessing vendors with? Have you engaged other business functions in your social media strategy? How will you be measuring? And why? How is social media related to other digital investments? Measure Who are you targeting and why? Are we playing offence or defense? Both? Do you envision these metrics changing over time? What’s your vision for social media and its integration into operational marketing systems? Integrate How do you intend to measure the effects of social media on brand equity and reputation, pipeline, and sales orders and margins? And how will you integrate social analytics into other customer data analytics? 13 | © 2012 IBM Corporation
  14. 14. Linking together social and customer data allows you tomanage marketing consistently across multiple channels Planning, coordinating and executing marketing campaigns to stimulate demand – it’s a process that includes social mediaInsights from Create Optimize display and Deliver targetedsocial media relevant search ad programs messages and offers and other messagesdata sources Capture responses and refine 14 | © 2012 IBM Corporation 14
  15. 15. Social Media Strategy … Measuring Impact Consumer Products’ Company’s 4-Point Strategic Plan for Social Media Analytics: 1. Establish Social Analytics Center of Excellence 2. Establish Advanced Social Analytics Capability for Brands, R&D, Strategy, and Public Relations 3. Progressively develop and roll out Social Analytics cockpit across Brands and Organizations 4. Train Business Analysts within each organization to leverage tools & consumer insights Emerging Integration Analytics Topics Sentiment Affinity 15 | © 2012 IBM Corporation
  16. 16. Product brand check…what do customers think about my product?The launch of a permanent mousse coloration product … achieving the highest share of positive statementsdrove significant share of voice over its well among all competitive products.established competitors... Using CCI, Henkel discovered a competitor weakness related to an underlying category attributes valued by consumers ■ A 100% increase in analyzed ■ Increased positive share of voice relevant discussions ■ Confirmed and validated market ■ Sophisticated analyticsthat drove strategy decision making 16 | © 2012 IBM Corporation
  17. 17. How Do We Measure Process and Success …. Why Analytics 17 | © 2012 IBM Corporation17
  18. 18. Social Media Influence 78% of consumers trust peer recommendations Source: August 25, 2009, “The Broad Reach Of Social Technologies” Forrester report 770 million people worldwide visited a social networking site. 18 Source: comScore, Social Networking Phenomenon | © 2012 IBM Corporation
  19. 19. Leader: High number of contacts in his/her community Network and reciprocity among them.Social Follower: Person with a Analysis similar profile to leader but in less grade. He/She has direct communication with the leader. Important: Outlier: Person with have number of contacts Some people a high more both ways, but with low reciprocity. influence than others, and some are more subject to 1st Grade Marginal: Person with a profile similar to the follower, but he/she is not near the leader. influence than others 2nd Grade Marginal: Profile not similar to the rest of the roles. He/She has few or no bidirectional relationships. 19 | © 2012 IBM Corporation
  20. 20. Technologies that Bolster Existing Marketing Processes to Monetize Social Investments Analyzing social media and applying predictive capabilities to discern new opportunities, segments and intentions that can optimize marketing and web activities and drive revenue Social media analytics that Predictive capabilities that bring Unique customer automation delivers an accurate view of repeatability to ongoing decision solutions that maximize 1:1customer attitudes and brand making, and help identify new market consumer relationships and their preferences opportunities revenue impact Social Media Analytics … integrating social media insights and predictive capabilities into marketing processes, helping customers proactively promote and anticipate consumer What’s the preferences, advocacy and loyalty to Right improve marketing ROI and grow revenue. Balance? 20 | © 2012 IBM Corporation
  21. 21. Social Media Foundation: IBM Cognos Consumer Insight • Enterprise class ability to analyze billions of blog posts • More than 20 years of NLP experience • Determine affinity to multiple analytic dimensions • Provide related topics above and beyond your search • Seamlessly integrate with Cognos BI  Understand your customers  Make evidence-based messaging decisions  Ensure seamless customer experience across all channels 21 | © 2012 IBM Corporation  Expand your point of analysis
  22. 22. Social Media Analytics and Predictive Analytics based on January 2009 “The Listening Platform Landscape” IBM Cognos Predictive Models Consumer Insight IBM SPSS Predictive Analytics Predict Customer behavior (churn, Xsell, Upsell) Campaign outcomes Influencer / Influenced 22 | © 2012 IBM Corporation
  23. 23. Using social media to identify influence and action Quantify, Monitor & Segment Leading Detractors Attitudinal Business Social Media Analytics Social Leaders Leading Advocates Interactions Online Scoring Scoring for Surveys Propensity to propensity to Advocate buy Descriptive Optimize and Execute Campaigns Behavior Viral marketing Points of offers to Interactions customer Special offers for Advocates 23 | © 2012 IBM Corporation and Potential Advocates
  24. 24. Social Segmentation – Customer example…understanding motivations to drive revenueGlobal consumer goods company created … to establish a baseline of marketing activitiesan advocacy model that measured that can be evaluated on driving revenue andparticipation with a brand and its attributes ability to influence.…■ Identified segments using weighted scoring ■ Predictive model used to determine the based on social media activity and discussions propensity to gain/retain influence by assessing regarding brand attributes posting patterns to identify the likelihood of a blogger to move into a more positive■ Combined social media analysis with participation segment predictive capabilities to ascertain triggers of ■ Segment movement was predicted on similar segment movement from brand believers to factors in terms of determining increasing levels brand advocates of passion, increasing frequency of © 2012 IBM Corporation 24 | postings
  25. 25. Global digital content created will increase some 30 times over the next ten years – to 35 zettabytes (IDC) How can we ensure analytics mean something with massive growth in data volume … Governance 25 | © 2012 IBM Corporation25
  26. 26. Where are you in a social maturity curve? Quantify & Integrate Listen Predict & Integrate Operationalize Transparently Business Outcomes Don’t wait to start  Predict & Improve  Seamless Integration of a data Outcomes With Internal, Extranet & Public governance Continuous Feedback Social Media Analysis & discussion with marketing …  Quantitatively Optimize Action Decisions Across  Systemic Governance  Identify & Measure ROI Functions  Operationalize Insight via  Limited Governance  Identify & Track KPIs Business Processes  Embedded Social  Qualitatively Improve  Quantitatively Improve Analytics Marketing Decisions Marketing Decisions  Full Sentiment  “Targeted Crowd  Open-up Social Media Marketing Channel  Geo-Spatial Analysis Sourcing”  Platform Analysis  Limited sentiment  Predictive Modeling  Network & influencer  SaaS & On Premise analysis Capabilities  Monitor & Engage  Limited back-end process  Lightweight “Domain-Specific” integration  Partner / Ecosystem Analytics  SaaS & On Premise Datasets  SaaS-Only  Business Intelligence  Complete Back-End Sourcing: ERP, HR, etc  Broad Public Social Media  3rd-Party Datasets  OEM-Level Sourcing of “BigSources Sourcing (“Big Data”) Data  Mainstream Social  Enterprise CRM & Data” Media Transactional Data 26 | © 2012 IBM Corporation Organizational Maturity & Sophistication
  27. 27. Social Media Readiness – IT Considerations Social media has broader business implications … IT needs to be involved as guardians of data and its distribution within the enterprise Further confirmation that the business model needs to match the application of social media … that scale and governance are central. Best Practices: Applying Social Business Challenges To Social Business Maturity Models, by Ray Wang, Costellation Research, 2011 Yes… but be sure that marketing is engaging a wider audience. Social media has a wider impact on an organization’s different functions – requiring cross- 27 | © 2012 IBM Corporation functional approaches to its adoption and management.
  28. 28. Final Thoughts …. • Marketing is going to use social media … • IT can help marketing by helping the CMO and his team: – Map out the right social media and marketing integrations process – Provide analytics that enable the measurement the effect across different business drivers – Establish data governance to deal with the huge volumes of social media data and integration into customer analytic processes 28 | © 2012 IBM Corporation
  29. 29. Questions? Mark Heid ? Email: mheid@us.ibm.com Twitter: @mheid LinkedIn: Mark Heid ? ? 29 | © 2012 IBM Corporation
  30. 30. Communities• On-line communities, User Groups, Technical Forums, Blogs, Social networks, and more – Find the community that interests you… • Information Management ibm.com/software/data/community • Business Analytics ibm.com/software/analytics/community • Enterprise Content Management ibm.com/software/data/content- management/usernet.html• IBM Champions – Recognizing individuals who have made the most outstanding contributions to Information Management, Business Analytics, and Enterprise Content Management communities • ibm.com/champion 30 | © 2012 IBM Corporation
  31. 31. Disclaimer © Copyright IBM Corporation 2010. All rights reserved. U.S. Government Users Restricted Rights - Use, duplication or disclosure restricted by GSA ADP Schedule Contract with IBM Corp. THE INFORMATION CONTAINED IN THIS PRESENTATION IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY.  WHILE EFFORTS WERE MADE TO VERIFY THE COMPLETENESS AND ACCURACY OF THE INFORMATION CONTAINED IN THIS PRESENTATION, IT IS PROVIDED “AS IS” WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED. IN ADDITION, THIS INFORMATION IS BASED ON IBM’S CURRENT PRODUCT PLANS AND STRATEGY, WHICH ARE SUBJECT TO CHANGE BY IBM WITHOUT NOTICE.  IBM SHALL NOT BE RESPONSIBLE FOR ANY DAMAGES ARISING OUT OF THE USE OF, OR OTHERWISE RELATED TO, THIS PRESENTATION OR ANY OTHER DOCUMENTATION. NOTHING CONTAINED IN THIS PRESENTATION IS INTENDED TO, NOR SHALL HAVE THE EFFECT OF, CREATING ANY WARRANTIES OR REPRESENTATIONS FROM IBM (OR ITS SUPPLIERS OR LICENSORS), OR ALTERING THE TERMS AND CONDITIONS OF ANY AGREEMENT OR LICENSE GOVERNING THE USE OF IBM PRODUCTS AND/OR SOFTWARE. Please update paragraph below for the particular product or family brand trademarks you mention such as WebSphere, DB2, Maximo, Clearcase, Lotus, etcIBM, the IBM logo, ibm.com, IBM Cognos, and IBM Cognos Consumer Insight are trademarks or registered trademarks ofInternational Business Machines Corporation in the United States, other countries, or both. If these and other IBMtrademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), thesesymbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published.Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks isavailable on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtmlIf you have mentioned trademarks that are not from IBM, please update and add the following lines:Forrester Research Inc. and Altimeter Inc. 31 | © 2012 IBM CorporationOther company, product, or service names may be trademarks or service marks of others.
  32. 32. Thank You! Your Feedback is Important to Us • Access your personal session survey list and complete via SmartSite – Your smart phone or web browser at: iodsmartsite.com – Any SmartSite kiosk onsite – Each completed session survey increases your chance to win an Apple iPod Touch with daily drawing sponsored by Alliance Tech 32 | © 2012 IBM Corporation32
  33. 33. 33 | © 2012 IBM Corporation33

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