This document discusses social business and how companies can use social tools and analytics to improve business outcomes. It notes that mobile use and social media are rising, increasing customer expectations. To meet these expectations, companies need to focus on customers and use social business approaches like social networks, mobile apps, analytics and collaboration tools to deepen customer relationships, increase revenue, and improve satisfaction, cost efficiency and agility. The document provides examples of how companies like IBM, CEMEX and the Australian Bureau of Statistics have successfully adopted social business strategies.

1. Social Business
Mike Handes
IBM Collaboration Solutions
@mikehandes
mhandes@au1.ibm.com

2. 3 big ideas to build one smarter planet
Instrument the world's systems
Smartphone shipments will outpace PCs by 2012
Interconnect them
Social networking accounts for 22% of all online time
Make them intelligent
Social data analytics opportunity will grow to 1 Zettabyte by 2011
“Watson is the latest example of IBM's 100-year history of scientific discovery.”
- Sam Palmisano, Chairman and CEO of IBM

3. Do we need to Work Smarter on a Smarter Planet?
Every week, 42% of people use
the wrong information to make
decisions
Employees spend 25% of their
time just looking for
information
91% of CEOs say they need to
restructure the way their
organizations work
Every week businesses waste
5.3 hours due to inefficient
processes
Business imperatives for Smart Work
3

4. CHROs highlight three key workforce areas as
significant opportunities for improvement
9
Relative effectiveness
Sourcing and
8 recruiting from
Managing outside the Retaining valued talent
labor costs organization within the organization
7
Evaluating Enhancing workforce
6 workforce productivity
performance
5
4 Rapidly developing
Efficiently allocating the workforce skills and
workforce capabilities
3
2 Developing future
Fostering collaboration leaders
and knowledge
1 sharing
1 2 3 4 5 6 7 8 9
Relative future importance
707 HR executive interviews
Source: Normalized results for Q2b (How important is it for your organization to address the following workforce challenges in the next 3 years?) and Q3 (How effective is your
organization in addressing the following workforce challenges today?)
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5. credit @davegray @dachisgroup http://www.flickr.com/photos/davegray/sets/72157626546771488/with/5640776283/ 5

6. credit @davegray @dachisgroup http://www.flickr.com/photos/davegray/sets/72157626546771488/with/5640776283/ 6

7. credit @davegray @dachisgroup http://www.flickr.com/photos/davegray/sets/72157626546771488/with/5640776283/ 7

8. credit @davegray @dachisgroup http://www.flickr.com/photos/davegray/sets/72157626546771488/with/5640776283/ 8

9. credit @davegray @dachisgroup http://www.flickr.com/photos/davegray/sets/72157626546771488/with/5640776283/ 9

10. Social Business MARKET
● 74% companies are integrating Web 2.0 with
customer interaction1
● 75% companies are integrating Web 2.0 into
employee day-to-day activities1
● 71% companies are integrating Web 2.0 with
partner/supplier interaction1
● 69% companies report that Web 2.0 tools have
delivered measurable business benefits1
● 38% estimated growth for the Social Business
software market through 20142
● $2B estimated Social Business software market
size in 20143
● IBM identified as the market share leader in
Social Platforms in 20104
“It will eventually be seen as essential to all large firms, encouraging more open and transparent
communications with staff around the world, and helping to improve relations with existing and
potential customers.” 5
1 Source: McKinsey Global Survey; “How companies are benefiting from Web 2.0”
2 Source: IDC, Predictions 2011: Welcome to the Mainstream
3 Source: IDC, “Determining the Value of Social Business ROI: Myths, Facts, and Potentially High Returns”
4 Source: IDC, Worldwide Social Software Software MarketShare by Vendor
5 Source: Gartner, “Study encourages businesses to embrace social networking”; Nikos Drakos

11. A Business

12. A SOCIAL Business
Engaged Agile
Transparent

13. Measurable Business Benefits of Web 2.0
68% - Increasing speed of access
to knowledge by avg 30%
54% - Reduce communications
costs by avg 20%
35% - Increasing employee
satisfaction by avg 20%
43% - Increasing customer
satisfaction by avg 20%
38% - Reduced marketing costs
by avg 20%
Source: McKinsey Global Survey on Web 2.0 Adoption

14. Social Business DEMAND
Business Demands
● Drives advocacy and more
sales through trusted
Business As Usual relationships
Deepen
relationships
Customer
● 'Push' marketing via
with customers
Experience traditional channels
Marketing ● Control over brand image ● Speed time to market and
and brand communication gain market share with break-
through ideas and products
Generate new
ideas faster
Product
● Invest in R&D
Customer ● Generate new ideas ● Save money by reaching out
Development
Experience
internally to professional networks to
● Test ideas in market respond faster to business
Marketing
Processes
decisions and opportunities
Enable a more
effective workforce
Operations,
● Email and phone based
communication
Human ● Knowledge kept in silos
Resources

15. Social Business EXPERIENCES
Optimize your Deepen client
workforce relationships
Exceptional Exceptional
Experience Experience
IBM Social Business Framework

16. Social Business DEPLOYMENT MODELS
Exceptional Exceptional
On Premises
Experience Experience
Hybrid
Public Private
Cloud Cloud
IBM Social Business Framework

17. Exceptional Experience
Standout
organizations are
57% more likely
to allow their
people to use
social and
collaborative tools.

18. For CEMEX, becoming a social business means
developing a culture of knowledge and insight-sharing
Goal: to shift culture
Project Shift
towards more open Driving a measurable social transformation...
collaboration across a
global organization
• Rapid organic adoption = 17000
employees connected in the first year, 400
new communities, innovation initiatives
increased from 5 to 9
• Bring new products to market faster =
600 participants across several countries
develop CEMEX' first globally-branded
ready-mix product
Campaign: Project Shift
- an internal social “It can make a big company look like a small company"
network
– Gilberto Garcia,
Director of Innovation
Smarter Innovation

19. ● 3200 staff and 700 field data collectors – economic, business,
environmental, population/demographic statistical outputs
● 9 offices located in all capital cities across Australia
Challenges “With IBM Connections ABS can use business-
grade social software, straight out of the box.”
● Recruiting quality staff
Dale Chatwin, Director, Knowledge Management Initiative, ABS.
● Virtual teams are a reality
● Resource Constraints
● Increasing demands  Knowledge fragmented Benefits
 Information hard to find ● Online communities formed
● Security and
confidentiality  External collaboration around interests, technologies
requirements
● Best practices now emerging from
these communities
Solution – IBM
● Needed to complement our existing ● Speeding the induction process
Workgroup Database and not ● New staff familiar with social tools
replace ● Induction focus on the context, “why”
● Couple the new social computing rather than “how”
features to the Workgroup Database ● Senior manages communicating
with dispersed teams via Blogs

20. IBM – A Social Business
Inside IBM
● 18,000 blogs; 86,655 bloggers; ROE of 10%1
● 3.5 million profile searches per week; ROE of 455%2
● 240,000 files; 5.4 million downloads; ROE of 23%3
● 285,000 wiki pages; 15.2 million views; ROE of 53%4
● 1.1 million bookmarks; 3.1 million tags
● 12 million instant messages per day
● 150,000 web meetings; 1 million participants
● 20,000 public communities; 345,000 members
● Measurable Value
─ Search satisfaction has increased by 50% with a
productivity driven savings of $4.5M per year
─ $700K savings per month in reduced travel
─ Reductions in voice mail, email server costs
Outside IBM
●8 million registered users; 4.5 million unique monthly visitors
● 2,500 public communities; 45,000 members
● 1,100 blogs; 25,000 comments; ROE of 26%1
● Measurable Value
─ $90 million in reduced support center costs
─ Reduce time for product documentation updates using
wikis
Suggested Reading: IDC Whitepaper - "Becoming a Social Business: The IBM Story"; January 2011
ftp://aix.software.ibm.com/ftp/demos/226706-IDC-Whitepaper-Becoming-a-Social-Business-IBM-Story.pdf
1) ROE Blogs = (Number of Comments + Number of Recommendations) / Number of Blogs 3) ROE Files = Number of downloads / Number of uploads
2) ROE Profiles (Yearly) = Number of searches / Number of profiles 4) ROE Wikis = Number of page views / number of pages

21. Exceptional Experience
Contextual Personalised Integrated Mobile
One Click Secure Discoverable Open
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22. Exceptional Experience
2010 IBM Global CEO Study
2010 Gartner CEO and Senior
Business Executive Survey*
The top three business priorities
95% of standout
for 2010 are:
organizations will
focus more on ● Retaining and enhancing
“getting closer to existing customers
the customer” over ● Maintaining competitive
the next 5 years. advantage
● Attracting new customers
Retaining Customers is Linked to Profitability
● A 2% increase in customer retention has the same effect on profits as cutting costs by 10%
● A 5% reduction in customer defection rate can increase profits by 25-125%, depending on industry
● Acquiring new customers can cost 5x more than satisfying and retaining current customers
*Source = Gartner Research. Mark Raskino, Jorge Lopez. March 29, 2010
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23. Exceptional Web Experiences Deliver
Better Business Outcomes
Business advantage Technology advantage
Conversation spectrum
Growth Customer Satisfaction Efficiency
● HSBC realized a 35% improvement ● Lufthansa handles 10,000 people ● Miami-Dade County saved $1
in marketing campaign revenue making travel requests every second million per year in labor costs
● Bharti-Airtel grew subscribers from ● LA County offers a consistent online ● US Army saves $1.3 Billion per year
6 million to 110 million in six years experience across 38 departments supporting 1.4 million Army
while providing quality services and for 10.4 million constituents personnel
support online
● Boston Medical increased referrals ● Harley-Davidson improved IT
● Lufthansa supports 16,000 by 30% and reduced no-show rates efficiency by 80%
customer check-ins/day. In 2008, by 10%
3.7 million online flights were ● Wimbledon efficiently scaled its
booked, growing by 37% in 2009 ● Woodmen of the World reduced call website to serve 12.3 million people
center support calls by 30% in 2009, 23% more than in 2008
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24. The outcomes – in only 4 months
● Credit limit changes have more than doubled in volume
- Online fulfilment has taken an additional 30% of fulfilment from more expensive channels
- August provided more than 6 times completion of credit changes from the 3 months prior
to launch.
● Nearly 20% of customer base opted out of paper statements
● Average logins/month for last 3 months has increased by 48% from the first 3 months of the
year
● Online contact detail updates tripled
● Average Net Promoter Score (customer satisfaction metric) increased 6 times, with customer
satisfaction rising from 91% to 96% average
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25. Rising
Customer
Expectations
Summary
Mobile Social
Explosion Everywhere
Increase
Revenue
Sa Cus
t
os
tis to
C
fa me
e
ct r
uc
Focus on the io ed
n Internet
R
Customer
Warp Speed
Social Business
Delivers
Better Business Outcomes
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26. Rising
Customer
Expectations
Summary
Mobile Social
Explosion Everywhere
Increase
Revenue
Sa Cus
t
os
tis to
C
fa me
e
ct r
uc
Focus on the io ed
n Internet
R
Customer
Warp Speed
Social Business
Delivers
Better Business Outcomes
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27. EXPECT & CELEBRATE People are amazing
the UNEXPECTED

28. Thanks!
Mike Handes 601 Pacific Highway
A/NZ Lead St Leonards NSW 2065
Collaboration Solutions
Tel: +61 402 090 923
mhandes@au1.ibm.com
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