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"Social Media and IT - What IT Needs to Know" - Lotusphere 2012
1.
Social Media and
IT: What IT Needs to Know SPN 209 Mark Heid, IBM Cognos Program Director, Social Analytics
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 user's 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.
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 Corporation 3
4.
Stating the obvious.
But it’s more than Tweeting happy thoughts … 4 | © 2012 IBM Corporation 4
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 Corporation 5
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 Corporation 6
7.
Social Frontlines –
Converging marketing channels Marketing: Damned if they do; Damned if they don’t Tomorrow's 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 Corporation 7
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 Corporation 8
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.
Social Media Strategy.
Fill in the blanks, please …. 10 | © 2012 IBM Corporation 10
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.
Proliferation and ownership Execution
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.
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.
Linking together social
and customer data allows you to manage marketing consistently across multiple channels Planning, coordinating and executing marketing campaigns to stimulate demand – it’s a process that includes social media Insights from Create Optimize display and Deliver targeted social media relevant search ad programs messages and offers and other messages data sources Capture responses and refine 14 | © 2012 IBM Corporation 14
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.
Product brand check …what
do customers think about my product? The launch of a permanent mousse coloration product … achieving the highest share of positive statements drove 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.
How Do We
Measure Process and Success …. Why Analytics 17 | © 2012 IBM Corporation 17
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.
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.
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 1:1 customer 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.
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.
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
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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
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Social Segmentation –
Customer example …understanding motivations to drive revenue Global consumer goods company created … to establish a baseline of marketing activities an advocacy model that measured that can be evaluated on driving revenue and participation 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
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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 Corporation 25
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 “Big Sources Sourcing (“Big Data”) Data Mainstream Social Enterprise CRM & Data” Media Transactional Data 26 | © 2012 IBM Corporation Organizational Maturity & Sophistication
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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.
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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.
Questions?
Mark Heid ? Email: mheid@us.ibm.com Twitter: @mheid LinkedIn: Mark Heid ? ? 29 | © 2012 IBM Corporation
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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.
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, etc IBM, the IBM logo, ibm.com, IBM Cognos, and IBM Cognos Consumer Insight are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols 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 is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml If 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 Corporation Other company, product, or service names may be trademarks or service marks of others.
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Thank You!
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