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Global Business Challenge & Digital Strategy


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A few slides I have presented with the co-author of this presentation, Ben Edwards at IBM internal events. Nothing super secret in here, of course: it's meant to help IBM executives who are not necessarily all that interested in communications and marketing programs understand the link between IBMers' participation in digital social activities and the business results we are planning to deliver to shareholders by 2015.

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Global Business Challenge & Digital Strategy

  1. 1. Global Business Challenge & Digital Strategy Ethan McCarty Digital and Social Strategy & Development
  2. 2. <ul><li>We have an aggressive roadmap to deliver results to our company’s owners by 2015. Doing more of the same business-as-usual activities isn’t a scalable approach to meeting these targets…meanwhile, digital approaches are often inherently scalable. </li></ul><ul><li>The communications revolution has brought large changes to what makes effective customer interactions. We must change what we do, by leveraging how people use digital media to search for and discover information. </li></ul><ul><li>The IBM digital presence must look like, sound like, think like and perform like IBM. The quality and performance of the IBM digital experience must meet the expectations of the brand and the demands of our business. </li></ul>Key challenges
  3. 3. Roadmap Model assumes ~5% revenue growth 2015 Roadmap <ul><li>Base business mixing to higher growth segments </li></ul><ul><li>~$20B of acquisition investment through 2015 </li></ul><ul><li>Full execution on growth initiatives enables revenue growth over 5% </li></ul>2015 Operating EPS At Least $11.35 Base Revenue Growth 5% Revenue Growth ~0.90 ~0.70 ~1.45 2 1 pt 2 pts 2 pts Base Growth Revenue Mix Acquisitions IBM’s 2015 roadmap: the growth imperative Acquisitions Revenue Mix
  4. 4. 58,000 marketing activities 8,500 events 4.5 million people targeted through outbound marketing tactics 500,000 people hosted at IBM briefing centers representing 18,000 client and partner organizations 38.3 million touches…more than 8 per person We are not short of client-focused activity. But do we have the right mix?
  5. 5. A paradigm shift in communication From To Channel Network Mass consumption Universal participation Institutional mediation Social mediation Content scarcity Content abundance Attention abundance Attention scarcity Asynchronous Real-time Virtual reality Integrated reality
  6. 6. Decision-making has changed The communications revolution has brought large changes to what is effective marketing and communications. We must change what we do, by understanding how people use digital to search for and discover information.
  7. 7. Search & Discovery Search & discovery sits at the core of modern marketing: it is how customer need gets matched to product or service. Two competing paradigms vie for dominance of search & discovery: The Search Paradigm The Social Paradigm
  8. 8. <ul><li>People find information and make choices by typing in keywords that surface links to web pages indexed and ranked by search engines for relevance. </li></ul><ul><li>Underpinning this paradigm is trust in the search algorithm to return relevant search results. </li></ul><ul><ul><li>You have to take it on faith that search engines will “do no evil.” </li></ul></ul><ul><ul><li>(There’s something oddly old-media about this.) </li></ul></ul>The Search Paradigm
  9. 9. <ul><li>People find information and make choices by paying attention to what their friends or peers are reading, watching, choosing, buying and recommending. </li></ul><ul><li>Underpinning this paradigm is trust in people I know (personal networks) and people like me (peer networks). </li></ul>The Social Paradigm
  10. 10. IBM’s social business strategy is to catalog IBMers’ expertise , manage access to them and optimize their interactions with our constituents. By fully enabling the digital IBMer , we can systematically manage the way these social interactions connect with all relevant parts of IBM – and perform these functions at massive scale. Expert Relationship Management Social Aggregator Social Business @ IBM Expert Locator Social Business Manager Social Intelligence IBM Social Business Strategy
  11. 11. Is the IBM digital experience true to our brand?
  12. 12. Social Business @ IBM
  13. 13. Sponsored media Mobile app /smarterplanet Expert Locator
  14. 14. Centennial opportunity