5. What’s hot and what’s not in Web 1.0 Web 2.0 Peer production, co-creation, clip culture Passive consumers, subscription content Personalised products, niche marketing, dynamic advertising Mass production, mass marketing, mass advertising Cross channel content; mobile to web, TV to Mobile, IPTV Parallel channels Consumer driven supply chains Supply chains based on historical data Virtual business models Command & control business models Interactions Transactions
6. A Perfect Storm: The Four Revolutions Inspired by: Don Tapscott IBM Global Technology Outlook IBM Global Innovation Outlook
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8. A Demographic Revolution A Social Revolution An Economic Revolution A Technology Revolution Inspired by: Don Tapscott IBM Global Technology Outlook IBM Global Innovation Outlook
10. Web 2.0 businesses are transforming the Internet The History of the World Wide Web Publishing Commerce Participation
11. The Consumer World : Empowerment as the catalyst Driving New Technology Adoption in the Workplace Driving New Interactions with Organisations 39% of Europeans use open source software; 29% plan to 21% European bid or sell on online auctions 45% Skype users are in Europe Internet ads to grow 22% in Europe 2007.. More than TV
15. Conventional business models are under pressure Customer priorities now and in 2020 Personal relationships with employees Brand values Quality of customer service Price competitiveness Quality of product/service Now (select up to three) 2020 (select up to three) Personalisation of product/service 52% 34%
16. A Demographic Revolution A Social Revolution An Economic Revolution A Technology Revolution Inspired by: Don Tapscott IBM Global Technology Outlook IBM Global Innovation Outlook
24. A Demographic Revolution A Social Revolution An Economic Revolution A Technology Revolution Inspired by: Don Tapscott IBM Global Technology Outlook IBM Global Innovation Outlook
26. A Demographic Revolution A Social Revolution An Economic Revolution A Technology Revolution Inspired by: Don Tapscott IBM Global Technology Outlook IBM Global Innovation Outlook
29. … . the workforce is changing by geography, generation, and culture “ I’ll have someone from my generation get in touch with someone from your generation.” What people do online monthly 40% 20% 18-26 27-40 41-50 51-61 Forrester Research Use social networking sites Read blogs Watch internet video Write blogs
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31. The Globally Integrated Enterprise: The New Global Business Business Model Innovation Globalization Internet Open Standards Changing Demographics Deregulation Commoditization Driving process excellence for back-office efficiency and client-facing productivity Operating by common set of values Capitalizing on talent and scale worldwide Globally Integrated Company Lowering the center of gravity closer to the customer Creating culture of innovation “ The emerging globally integrated enterprise fashions its strategy, management and operations in pursuit of value delivery worldwide. State borders define less and less the boundaries of corporate thinking or practice.” Sam Palmisano IBM Chairman and CEO
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37. Web 2.0 Technologies Enable Social Networking Solutions People Optimized Point Dynamic – Web 2.0 Process Optimized Information Optimized Integrated Publish Information Processes & Transactions Connecting People Web 2.0: Second-generation of Internet-based services that let people collaborate and share information online in new ways — such as social networking sites, wikis, communication tools, and social bookmarking .
75. People around the world IBMers around the world Other IBMers in Gail's country Co-Workers Friends Since discovering Lotus Connections , her network has grown to... Gail Jim Mary Gail's manager Jim’s manager Susan John Helen Roberto Akira Chris Peter Frequent e-mails Infrequent e-mails Wikis + Blogs + SN
76. ...and she uses Lotus Connections Smallblue (Atlas) to extend her network...
85. “ In the new global economy, one simple rule prevails: when everything is connected, work moves . It flows like water to the places it will be done best, be that Bangalore, Austin, or Cape Town. (but) it’s not only work that flows when everything is connected. So does competition. So does political stability. So does economic progress.” Sam Palmisano
86. “ We no longer have to replicate IBM from floor to ceiling in every country. We are optimizing key operations in the right places in the world – eliminating redundancies and excess overhead – and integrating those operations horizontally and globally. (…) This is about doing the right tasks, with the right skills, in the right places.” Sam Palmisano
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88. We made important strategic decisions, and got to work I. To become the premier Globally Integrated Enterprise II. To focus on open technologies and high-value solutions III. To deliver integration and innovation to clients
89. Internet Connectedness as of 2006 Over one billion individuals are using the internet ~17% of global population Source: Computer Industry Almanac http://www.c-i-a.com/pr0899.htm # of Internet Users (M) North America Western Europe Asia-Pacific South Central America Eastern Europe Middle East/Africa Deployment Installation Crash Worldwide Internet Usage by Region Source: http:// www.internetworldstats.com/stats.htm Regional Share 30% 28% 25% CAGR 30% 0 100 200 300 400 500 600 700 800 1995 2000 2005 4% 1% Middle East / Africa 6% 1% Eastern Europe 7% 1% South Central America 25% 8% Asia-Pacific 28% 20% Western Europe 30% 69% North America 2005 1995 Region
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96. Discovery Reach new people and prospects Influence Millions upon millions of people converge because of these social networks. Leverage that… Marketing 2.0 So, you don’t get the connection between social networking and marketing? Just think……
97. How social networking can support your business objectives Remember, with social networks The marketing communications landscape is shifting dramatically as it moves from marketers talking at customers , to marketers listening and responding to customer discussions . Drive existing and new clients to your web site to increase the success of your web program, build excitement and participation in key events, and enable your social network to create a buzz about your brand Generate new leads & Increase marketing effectiveness Positively influence the way existing & potential clients perceive your brand. Build & Protect brand integrity Social networks can rapidly generate Word of Mouth and Brand Buzz eg Nike Increase brand awareness How can Social Networks Help Objective
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100. So what might a marketing framework look like? Build Network Communicate, Share Thoughts Collaborate on Ideas Challenge Team to Innovate IBM Network Professional Network Create FaceBook Advocacy Groups Create LinkedIn Groups Promote in status Use Beehive to create events & Promote programs in personal status & High5s Create Lotus Connections community Promote campaign in sametime messages. BlueTwit External Event teaser and offering updates on You Tube Store supporting files on Cattail Add actions identified from clients in social network as actions in Lotus Connections Activities Tag marketing programs, offerings and events on Dogear, RSS Use post event feedback to create Thinkplace Challenge and address opportunities presented to us from our clients Learn, Share Resources Create external blog to build connection with social network and create IBM Advocacy Communities Posts marketing blog updates on BlockCentral Personal Network Constantly growing influenced network Drumbeat Grassroots strategy engagement Innovative Growth Increased productivity Output Input Primary Optional Use RSS Feeds to automatically deliver new Content based on your preferences Create Brand Buzz & Build Relationships with Twitter Use Tagging & LinkBaiting eg Digg to increase search word success
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102. Remember that you are no longer in control – this is about listening and participating in the conversation to build relationships and influence.
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105. New corporate competencies are required to operate in this environment 21 Leverages the power of global assets Taps into a universe of modular services Operates seamlessly across boundaries via global values, skills and processes Embraces open collaboration and knowledge sharing practices Makes informed choices within a global competitive market Secures unique value via specialization in a network of open partners The Globally Integrated Enterprise Operating Model Innovation Workforce enablement and effectiveness
106. The Enterprise of the Future is … Globally integrated 3 Hungry for change 1 Disruptive by nature 4 Genuine, not just generous 5 Innovative beyond customer imagination 2
107. CEOs see change coming from everywhere 2004 2006 2008 Market factors People skills Macroeconomic factors Globalization Regulatory concerns Technological factors Socioeconomic factors Environmental factors Geopolitical factors 84% 67% 42% 33% 44% 41% 48% 48% 35% External Forces Impacting the Organization Source: IBM Global CEO Study 2008; n (2004) = 403, n (2006) = 760, n (2008) = 1130 Market factors People skills Technological factors Globalization Regulatory concerns Macroeconomic factors Environmental factors Socioeconomic factors Geopolitical factors
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109. Companies go after new customers in new markets Source: IBM Global CEO Study 2008, n = 609; * Total investments: all asset investments + all investments in R&D, marketing and sales Rise of purchasing power in rapidly developing economies and prosperity in Western economies 23.2% 27.5% Impact Investment* 19 % INCREASE
110. CEOs see more potential in a new class of customer Source: IBM Global CEO Study 2008, n = 609 Impact “ In the future, we will be talking more and more about the ‘prosumer’— a consumer/producer who is even more extensively integrated into the value chain. As a consequence, production processes will be customized more precisely and individually.” Hartmut Jenner, CEO, Alfred Kärcher GmbH Rise of the Informed and Collaborative Customer: The Information Omnivore
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112. “ A few years ago, we were a national company; now we’re a global company. Our integrated supply chain must adapt to meet demand in 50 countries. We’re going to have to bring people in from the outside.” Jim Guyette, President and CEO, Rolls-Royce North America
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114. Business model transformation erupts Business Model Innovation Focus Source: IBM Global CEO Study 2008; n = 1106 Multiple BMI Types 20% Industry Model Innovation 18% Enterprise Model Innovation 39% Revenue Model Innovation 23%
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116. Corporate social responsibility rising on the CEO agenda “ Our company is investing extensively in corporate social responsibility. We need to be a reference in this domain. As the leader of the luxury industry, we have to stay ahead.” Yves Carcelle, Chairman and CEO, Louis Vuitton Source: IBM Global CEO Study 2008; n (2004) = 403, n (2006) = 760, n (2008) = 1130 External Forces Impacting the Organization