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Web2.0 goes to work Natraj Akella   Business Head – India / SA Advanced Collaboration  Lotus SWG  IBM India [email_address]
Web 2.0 http://www.flickr.com/photo_zoom.gne?id=464050003&size=o, Yaniv Golan http://www.flickr.com/photo_zoom.gne?id=464050003&size=o   Yaniv Golan
Love it or hate it… you have to know about it!
Five Historical Waves of Economic & Social Transformation Installation Deployment Irruption The Industrial  Revolution Age of Steam  and Railways Age of Steel, Electricity and Heavy Engineering Age of Oil, Automobiles and Mass Production Age of Information and Telecommunications Frenzy Synergy Maturity Panic 1797 Depression 1893 Crash 1929 Dot.com Collapse Coming period of Institutional Adjustment 1 2 3 4 5 Panic 1847 1771 1829 1875 1908 1971 1873 1920 1974 1829 Source: Perez, C., “ Technological Revolutions and Financial Capital ”, 2002 Crash Formation of Mfg. industry Repeal of Corn Laws opening trade Standards on gauge, time Catalog sales companies  Economies of scale Urban development Support for interventionism Build-out of Interstate  highways  IMF, World Bank, BIS
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
A Perfect Storm: The Four Revolutions Inspired by:  Don Tapscott IBM Global Technology Outlook IBM Global Innovation Outlook
The  Particular  Characteristics of the Coming Deployment Installation Deployment Irruption Age of Information and Telecommunications Frenzy Synergy Maturity Dot.com Collapse 5 1971 A global game board – doubling of the labor pool  Open standards, and a proliferation of componentization Aggressive exploration of new business models Social and political tension over globalization’s pace, impact Significant empowerment of individuals Coming Period of Institutional Adjustment Crash
A Demographic Revolution A Social Revolution An Economic Revolution A Technology Revolution Inspired by:  Don Tapscott IBM Global Technology Outlook IBM Global Innovation Outlook
Economic http://flickr.com/photo_zoom.gne?id=1812312679&size=o Coyote Jack
Web 2.0 businesses are transforming the Internet The History of the World Wide Web Publishing Commerce Participation
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
Consumer power  has created new environments and opportunities 27 * Concise Oxford English Dictionary Easier access to information Growing influence of social networks and communities Changes in media consumption Increasing expectation of unique experience Polarization of  shopping behaviour Empowered Consumer
Changes in  media   consumption Source: Neopets Youth Study; Annual Reports; Press Clippings; McKinsey analysis …  as individuals switch to online media… Daily hours spent at activity 5.0 2.0 TV 0.5 2.5 Internet 2003 2004 2005 2006 …  resulting in increased online advertising spend Google UK advertising revenue £m 1,300 800 TV advertising is losing effectiveness… 1990 2010 Advertising rates increase DVR penetration Multi-tasking Saturation Indexed impact of TV advertising 100 40 -60% 77 Channel 4 ITV 1 General population Teen population
The Business World:   Conventional models are under pressure
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%
A Demographic Revolution A Social Revolution An Economic Revolution A Technology Revolution Inspired by:  Don Tapscott IBM Global Technology Outlook IBM Global Innovation Outlook
Social http://flickr.com/photo_zoom.gne?id=1039909856&size=l Todd Huffman
Amazon http://flickr.com/photo_zoom.gne?id=22691500&size=l  Fluzo
ebay http://flickr.com/photo_zoom.gne?id=303284582&size=o  liewcf
 
Blogs http://flickr.com/photo_zoom.gne?id=15649424&size=l basykes
Wikis http://flickr.com/photo_zoom.gne?id=1251418253&size=o hive
Unlocking Knowledge http://flickr.com/photo_zoom.gne?id=321433870&size=l  Darwin Bell
A Demographic Revolution A Social Revolution An Economic Revolution A Technology Revolution Inspired by:  Don Tapscott IBM Global Technology Outlook IBM Global Innovation Outlook
Technical http://flickr.com/photo_zoom.gne?id=637176822&size=l  Brenda Anderson
A Demographic Revolution A Social Revolution An Economic Revolution A Technology Revolution Inspired by:  Don Tapscott IBM Global Technology Outlook IBM Global Innovation Outlook
Baby Boomers 44 to 63 years old Generation X 28 to 44 years old Millennials 8 to 28 years old Traditionalists > 63 years old © 2008 Gonzo fan2007 Creative Commons Attribution License
Consequences for the corporate world Web 2.0 represents a fundamental shift toward a more open, flexible and participatory model for creating content systems and business models.  Its applications can reduce costs, enhance adaptability and create new business opportunities.  Web 2.0 increases productivity & speeds up business processes 2.0 services could help solve problems for corporations that current software and online services have so far been unable to fix.  Many organizations are starting to add Web 2.0 technologies such as Ajax, RSS, SNA and Collective Intelligence to their applications, platforms and products
… . 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
Achieving breakthrough business performance will be greatly influenced by how well companies harness the collective knowledge & foster interaction across it’s  globally connected community  of employees, customers, partners, and suppliers.   To thrive in this environment companies must: Weave communities into development of products and services, Use employees and partners as marketers Become part of a living fabric of brand loyalists (Forrester) New Approaches Required to Boost Performance & Growth IBM Institute for Business Value, CEO Study 2006 CEOs: Sources of new ideas and innovation Business partners Customers Consultants Competitors Associations, trade groups, conference boards Academia Internet, blogs, bulletin boards Think tanks Other R&D (internal) Sales or service units Employees (general population) 5% 15% 25% 35% 45% 45% 35% 25% 15% 5%
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
The world is changing Formal Work Domain: Operations, Performance Management Human Resource Management Supply Chain Management Geographical Divisions Marketing Manufacturing etc. Informal Work Domain: Virtual Teams Communities of Practice Expert Networks Knowledge Communities Inside and outside the organizational boundaries From hierarchies…  to  networked hierarchies
Work environments are more complex Matrixed  organizations Organization changes Mergers /  Acquisitions Global  companies Telecommuting /  Remote  workers Work is increasingly collaborative Increased  Specialization Ad hoc  projects More interactions  with unknown people Changing Nature of Work… “ Today, more than 85 percent of a typical S&P 500 company’s market value is the result of intangible assets. For many companies, the bulk of these intangible assets is its people, its human capital. It is no longer what you own that counts but what you know…”  — Craig Symons, Forrester Research, Inc. … Drives a Need to Connect Dispersed Workforces
58%   of IT managers think of their companies as a “global virtual office” 90%   of the employees work in different locations, far from the headquarters More than   60%  of the employees work in a different location than their manager The number of "virtual" workers has increased more than   800%   in the last 5 years Source: Nemertes Research Inc. The office is… “virtual”….
Organizational change, boldness, need for collaborative innovation through the firewall drives social software adoption Organizations are bombarded by change, and many are struggling to keep up. 8 of 10 CEOs:  significant change ahead, yet the gap between expected change and the ability to manage it is almost triple since ‘06. CEOs view more demanding customers as an opportunity to differentiate.  CEOs are spending more to attract and retain increasingly prosperous, informed and socially aware customers. IBM Institute for Business Value CEO Study 2008 2/3 of CEOs are implementing extensive innovations. >40% are changing their models to be more collaborative. Financial outperformers are making bolder plays. These companies anticipate more change, and manage it better. They are also more global in their business designs, partner more extensively and choose more disruptive forms of business model innovation.
Connecting and Empowering People in a Complex World  Business is more complex for employees, partners and customers Organization changes Mergers/Acquisitions Global companies Telecommuting Changing demographics Social software Bottom-up methods are used to build vibrant, diverse communities Users are motivated because it helps them connect to people faster User input increases the value of the service and drives interaction Capabilities can be accessed through existing software
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 .
The Value of Social Software for Business Information from undiscovered subject-matter experts can be found quickly Research is faster using pre-qualified bookmarks Projects are staffed with the best people Complete Tasks Faster Groups can access task related information Exchanging ideas across the organization improves quality of deliverables   Duplicate tasks are avoided Execute with Confidence Customer and partner relationships are strengthened via communities New products/services spawned from those communities can be executed  with efficient task management Grow through Innovation Employees can tap the collective knowledge of an expanded and growing professional network Integrated and open services that you use as part of your daily work Empower People
Introducing IBM Lotus® Connections Lotus Connections is social software for business that empowers you to be more innovative and helps you execute more quickly by using dynamic networks of coworkers, partners and customers. Communities Blogs Dogear Activities Profiles
 
 
Web 2.0, Social Computing and Innovation Forrester references Web 2.0 design as a  bottom-up innovation  approach led from the customer/user’s point of view.  This approach yields greater delivery speed, customer affinity, and ROI for web initiatives.
Attributes of Enterprise 2.0 Andrew McAfee  “The Trends Underlying Enterprise 2.0” http://blog.hbs.edu/faculty/amcafee/index.php/faculty_amcafee_v3/the_three_trends_underlying_enterprise_20/ Simple, Free Platforms for Self-Expression “ Freedom of the press is limited to those who own one." AJ Liebling Emergent Structures, Rather than Imposed Ones Failure:  Nupedia  “extensive review process… quality comparable to professional encyclopaedias” Success:  Wikipedia  “making it easier to correct mistakes, rather than difficult to make them” Ward Cunningham (creator of  Wiki ) "What’s the simplest thing that could possibly work?“ Order from Chaos “ If everyone… starts blogging, editing, uploading… isn’t chaos inevitable?  Won’t we simply drown in information? Amazingly enough, the answer seems to be a simple ‘no’” “ Because in addition to building platforms for self-expression and overcoming tendencies to impose structure, Web 2.0 is … rolling out tools to help us filter, sort, prioritize, and generally stay on top of the flood of new online content” Search, Tags, RSS, etc. “ Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and their partners or customers”
I have a dream… “ I have a dream for the Web [in which computers] become capable of analyzing all the data on the Web –the content, links, and transactions between people and computers. A ‘Semantic Web’, which should make this possible, has yet to emerge, but when it does, the day-to-day mechanisms of trade, bureaucracy and our daily lives will be handled by machines talking to machines. The ‘intelligent agents’ people have touted for ages will finally materialize.” (Tim Berners-Lee, 1999)
The future of Office
Meet  Gail.
AKA  ...the WDI Africa Team Leader.
We’ve become friends since I joined the WDI program.
Old Way New Way Gail wants to do things the  New Way
I  have introduced  Gail  to new tools so she can  improve her productivity  at work.
@ home
… she uses   Google  and  Del.icio.us   to   filter   the Internet for the information she needs.
@ work
… she uses  Dogear  to find what she needs.
@ home
… she taps the  collective knowledge  of the internet through Wikipedia.
@ work
… she taps the  collective wisdom  of her team through a Quickr place.
@ home
...if she misses a radio show or a bit of TV she  catches up  using…
@ work
… if she misses a meeting she pulls the   summary   minutes from the   media library.
@ home
… through … she knows what her friends are doing  24/7  wherever they are.
@ work
… she  networks  using  Lotus Connections  to stay connected.
@ home
When she’s not catching up with friends, she’s using her spare time to catch up on her WDI colleagues.
She has her own  blog … ...where she  advertises  her WDI activities.
So far she’s had  many people  read her blog from  all over the   world .
In this online   community   she’s …  a respected   leader … and a   dedicated   follower.
When she got   interested   in the WDI  her   network   was…
now   it’s…
@ work
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
...and she uses Lotus Connections Smallblue (Atlas) to extend her network...
...and her favourite tools to collaborate
She is a star at work and no longer sends large email attachments... ...because attachments are stored and shared in a Quickr place.
If you ask Gail what she enjoys most at work, she’ll say…
… I am able to   connect   with  anybody …
… at  anytime …
… from  anywhere ...
… using my favourite  tools !
Are you ready?
“ 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
“ 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
 
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
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
Changes  in world markets: The rising tide  of globalization Several years ago, we saw change coming Changes in Information Technology: A new computing architecture Changes  in client  needs: Integration and innovation
What customers want How customers ask for Web 2.0 Find People to establish a team Support the team during it's life Capture the knowledge from the team for others How to I find people ? No longer dependent on organisation structure Job Titles are ineffective for finding people Challenges How can I increase the number of connections I can maintain Share my perspective of people with others Fringe / Lotus Connections http://fringe.tap.ibm.com/ Tag yourself and others Find people by others tags Visualise Connections Who Cares Investment Banks and other organisation that form diverse teams in the same way and beyond the way we form project  teams
What customers want How customers ask for Web 2.0 How do I Support Team Activities ? Activity Centric Computing Challenges An explosion of Teamrooms, Sharepoint sites or QuickPlaces Support for processes that can be templated but are not codified or directly repeatable Lotus Connections (Activities) Implements Activity Centric Computing Task management supported by Email rather than through email Transient storage of the information and resources to achieve an activity Who Cares Organisations with large corporate / head office functions Dependence on knowledge workers Supporting those same short lived project teams with specific objectives but without a common reporting structure. Activity Centric Collaboration Find People to establish a team Support the team during it's life Capture the knowledge from the team for others
What customers want How customers ask for Web 2.0 How do support the accumulation of knowledge ? Wikipedia for my organisation Challenges Create a context that is about updating and improvidng information rather than creating Avoid an explosion of Teamrooms, Sharepoint sites and QuickPlaces Wiki’s / Lotus QuickR No strict Taxonomy Low barriers to updating content Who Cares Organisations with large corporate / head office functions Dependence on knowledge workers Web Content Management Structured process for the creation of content through a lifecycle Heavy focus on presentation through strict templates Predefined taxonomy supported by Heirarchial Navigation Wiki based Knowledge Management Agile process for the incremental update of content Without a strict taxonomy Increasingly within access controlled domains eg a Communities Wiki. Find People to establish a team Support the team during it's life Capture the knowledge from the team for others
What customers want Queries and opportunities for web2.0  How can my brand be everywhere on-line? Merchants want consumers to be able to access their branded services and content from any on-line location and device How can the business innovate? Provide services as widgets that can be combined to explore and address new opportunities Provided by a Mashup maker environment and catalogue of mashup components and data feeds IBM Mashup Centre Who is asking – Telcos, customer service teams, data analysts, market analysts
What customers want Queries and opportunities for web2.0  Give me an immersive environment Customers are asking for our services to help them build virtual worlds for education, collaboration and retail
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……
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
What are IBM’s Social Media Marketing Goals Drive a channel for  feedback and action Cultivate conversations  and  build an advocacy  base for IBM and our offerings. Better connect  with our target audiences :  Brand, Content, People Support the expectations  of our customers and create a  more favorable  selling/buying environment. Accelerate Growth
IBM Marketing is getting started – by Listening!  Listen Interpret Integrate Identify the  key venues/places  where people are talking Understand  what they are saying ; identify the  issues that are being raised  and understand the  sentiment  in which they are being spoken Identify   where  we want to  participate  – with the  right SMEs
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
Getting started Build   your social network and communities – Join and create groups IBM: Beehive, Lotus Connections External: Facebook, LinkedIn, Twitter, Xing, Sphinn, SecondLife, etc Search  for  relevant   bloggers that relate to your brand Tag  with key words and post to an RSS Feeder (aggregates your favourite sites so that you can manage the noise and work more productively IBM: Doggear External: del.i.cious, Digg, Stumble,  Consider  linkbaiting   to drive traffic back to your site (See Google trends) Participate  in the conversation Leave commentary that will provide unique points of difference and drive the bloggers social network back to your website. Remember your objectives when responding. Make yourself known. Join bloggers social network IBM BlogCentral, IBM Forum External: Blog, WordPress, Digg, Stumble, LinkedIn Q&A, FaceBook Group Discussion Threads Create  your own blog.  Consider linkbaiting to drive people to your blog and ultimately to your company’s web site Promote and leverage your social network to create a buzz. Remember Blogging is about the relationship between the blogger and their social network. It is powerful .  And lastly…………………..
Remember  that you are  no longer in control –  this is  about  listening  and  participating  in the conversation   to build relationships and influence.
Real challenges are driving the need for collaborative solutions Need for Innovation Need for Execution Need to Empower  Need to Connect  75% of CEOs indicated that  collaboration  was important to innovation and top source for new ideas To thrive in this environment  companies must:  Weave communities  into the product development process and  Execute  innovative ideas  quickly CEOs: Sources for ideas and innovation Project based environments with more dispersed teams Multi-modes of communicating and working drive the need for simpler ways to structure work activities and share information  Work is increasingly more complex - M&A, global companies, remote workers, offshoring, organization changes – leading to more interactions with unknown people Organizations experiencing these conditions must find ways to transcend traditional boundaries, connect employees and help form high performing teams Maturing workforce effecting critical areas of the global working population To address the loss of critical knowledge organizations must harness knowledge capital and educate new workforces with unprecedented scale
G lobalization increases the complexity of integrating processes and operations HR IT R&D Operations  Sales Finance Headquarters Diverse architectures and networks Functional and cross functional integration  Forming effective global teams Integration across enterprises and with customers
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
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
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
Are you ready? Does your organization have a healthy appetite for change? Have you seeded your organization with visionary challengers and provided them with the freedom to effect meaningful change? Do you manage change as a structured program and measure change management effectiveness? Do you have robust processes in place to incubate new product, service and business model concepts — and redirect investment when required?
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
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
Are you ready? Which of your offerings are breaking new ground, opening entirely new segments or markets? What can you learn from them? Are you systematically evaluating potential geographic markets? How do you achieve the efficiencies of global brands, products and services while remaining locally relevant? When customer preferences shift, are you the first to understand and act on this or do your competitors react more quickly? Are you effectively integrating disparate data and systems to gain new customer insights?
“ 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
Are you ready? Are you effectively integrating differentiating capabilities, knowledge and assets from around the world into networked centers of excellence? Does your organization have a globally integrated business design (even if it does not have a global footprint)? Do you have a detailed plan for global partnering and M&A? Are you developing leaders that think and act globally? Do you nurture and support social connections to improve integration and innovation?
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%
Are you ready? Is a disruptive business model about to transform your industry? Is it more likely to come from you or your competitors? Do you spend time thinking about where the next disruption will come from? Are you watching other industries for concepts and business models that could transform your market? Are you able to create space for entrepreneurs and innovative business models while continuing to drive performance today?
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
Are you ready? Do you understand your customers’ CSR expectations? How are you involving them in solutions? Do you know which NGOs your customers listen to and are you collaborating with those groups? Have you gained insights from current green initiatives that can be applied to your broader corporate social responsibility strategy? Are you offering employees the opportunity to personally make a difference? How do you ensure that actions taken throughout the enterprise — and the extended value chain — are consistent with your CSR values and stated policies?
Time’s Person of the Year

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Web Innovation - DBB - social media & blogcamp

  • 1. Web2.0 goes to work Natraj Akella Business Head – India / SA Advanced Collaboration Lotus SWG IBM India [email_address]
  • 2. Web 2.0 http://www.flickr.com/photo_zoom.gne?id=464050003&size=o, Yaniv Golan http://www.flickr.com/photo_zoom.gne?id=464050003&size=o Yaniv Golan
  • 3. Love it or hate it… you have to know about it!
  • 4. Five Historical Waves of Economic & Social Transformation Installation Deployment Irruption The Industrial Revolution Age of Steam and Railways Age of Steel, Electricity and Heavy Engineering Age of Oil, Automobiles and Mass Production Age of Information and Telecommunications Frenzy Synergy Maturity Panic 1797 Depression 1893 Crash 1929 Dot.com Collapse Coming period of Institutional Adjustment 1 2 3 4 5 Panic 1847 1771 1829 1875 1908 1971 1873 1920 1974 1829 Source: Perez, C., “ Technological Revolutions and Financial Capital ”, 2002 Crash Formation of Mfg. industry Repeal of Corn Laws opening trade Standards on gauge, time Catalog sales companies Economies of scale Urban development Support for interventionism Build-out of Interstate highways IMF, World Bank, BIS
  • 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
  • 7. The Particular Characteristics of the Coming Deployment Installation Deployment Irruption Age of Information and Telecommunications Frenzy Synergy Maturity Dot.com Collapse 5 1971 A global game board – doubling of the labor pool Open standards, and a proliferation of componentization Aggressive exploration of new business models Social and political tension over globalization’s pace, impact Significant empowerment of individuals Coming Period of Institutional Adjustment Crash
  • 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
  • 12. Consumer power has created new environments and opportunities 27 * Concise Oxford English Dictionary Easier access to information Growing influence of social networks and communities Changes in media consumption Increasing expectation of unique experience Polarization of shopping behaviour Empowered Consumer
  • 13. Changes in media consumption Source: Neopets Youth Study; Annual Reports; Press Clippings; McKinsey analysis … as individuals switch to online media… Daily hours spent at activity 5.0 2.0 TV 0.5 2.5 Internet 2003 2004 2005 2006 … resulting in increased online advertising spend Google UK advertising revenue £m 1,300 800 TV advertising is losing effectiveness… 1990 2010 Advertising rates increase DVR penetration Multi-tasking Saturation Indexed impact of TV advertising 100 40 -60% 77 Channel 4 ITV 1 General population Teen population
  • 14. The Business World: Conventional models are under pressure
  • 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
  • 20.  
  • 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
  • 27. Baby Boomers 44 to 63 years old Generation X 28 to 44 years old Millennials 8 to 28 years old Traditionalists > 63 years old © 2008 Gonzo fan2007 Creative Commons Attribution License
  • 28. Consequences for the corporate world Web 2.0 represents a fundamental shift toward a more open, flexible and participatory model for creating content systems and business models. Its applications can reduce costs, enhance adaptability and create new business opportunities. Web 2.0 increases productivity & speeds up business processes 2.0 services could help solve problems for corporations that current software and online services have so far been unable to fix. Many organizations are starting to add Web 2.0 technologies such as Ajax, RSS, SNA and Collective Intelligence to their applications, platforms and products
  • 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
  • 30. Achieving breakthrough business performance will be greatly influenced by how well companies harness the collective knowledge & foster interaction across it’s globally connected community of employees, customers, partners, and suppliers. To thrive in this environment companies must: Weave communities into development of products and services, Use employees and partners as marketers Become part of a living fabric of brand loyalists (Forrester) New Approaches Required to Boost Performance & Growth IBM Institute for Business Value, CEO Study 2006 CEOs: Sources of new ideas and innovation Business partners Customers Consultants Competitors Associations, trade groups, conference boards Academia Internet, blogs, bulletin boards Think tanks Other R&D (internal) Sales or service units Employees (general population) 5% 15% 25% 35% 45% 45% 35% 25% 15% 5%
  • 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
  • 32. The world is changing Formal Work Domain: Operations, Performance Management Human Resource Management Supply Chain Management Geographical Divisions Marketing Manufacturing etc. Informal Work Domain: Virtual Teams Communities of Practice Expert Networks Knowledge Communities Inside and outside the organizational boundaries From hierarchies… to networked hierarchies
  • 33. Work environments are more complex Matrixed organizations Organization changes Mergers / Acquisitions Global companies Telecommuting / Remote workers Work is increasingly collaborative Increased Specialization Ad hoc projects More interactions with unknown people Changing Nature of Work… “ Today, more than 85 percent of a typical S&P 500 company’s market value is the result of intangible assets. For many companies, the bulk of these intangible assets is its people, its human capital. It is no longer what you own that counts but what you know…” — Craig Symons, Forrester Research, Inc. … Drives a Need to Connect Dispersed Workforces
  • 34. 58% of IT managers think of their companies as a “global virtual office” 90% of the employees work in different locations, far from the headquarters More than 60% of the employees work in a different location than their manager The number of "virtual" workers has increased more than 800% in the last 5 years Source: Nemertes Research Inc. The office is… “virtual”….
  • 35. Organizational change, boldness, need for collaborative innovation through the firewall drives social software adoption Organizations are bombarded by change, and many are struggling to keep up. 8 of 10 CEOs: significant change ahead, yet the gap between expected change and the ability to manage it is almost triple since ‘06. CEOs view more demanding customers as an opportunity to differentiate. CEOs are spending more to attract and retain increasingly prosperous, informed and socially aware customers. IBM Institute for Business Value CEO Study 2008 2/3 of CEOs are implementing extensive innovations. >40% are changing their models to be more collaborative. Financial outperformers are making bolder plays. These companies anticipate more change, and manage it better. They are also more global in their business designs, partner more extensively and choose more disruptive forms of business model innovation.
  • 36. Connecting and Empowering People in a Complex World Business is more complex for employees, partners and customers Organization changes Mergers/Acquisitions Global companies Telecommuting Changing demographics Social software Bottom-up methods are used to build vibrant, diverse communities Users are motivated because it helps them connect to people faster User input increases the value of the service and drives interaction Capabilities can be accessed through existing software
  • 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 .
  • 38. The Value of Social Software for Business Information from undiscovered subject-matter experts can be found quickly Research is faster using pre-qualified bookmarks Projects are staffed with the best people Complete Tasks Faster Groups can access task related information Exchanging ideas across the organization improves quality of deliverables Duplicate tasks are avoided Execute with Confidence Customer and partner relationships are strengthened via communities New products/services spawned from those communities can be executed with efficient task management Grow through Innovation Employees can tap the collective knowledge of an expanded and growing professional network Integrated and open services that you use as part of your daily work Empower People
  • 39. Introducing IBM Lotus® Connections Lotus Connections is social software for business that empowers you to be more innovative and helps you execute more quickly by using dynamic networks of coworkers, partners and customers. Communities Blogs Dogear Activities Profiles
  • 40.  
  • 41.  
  • 42. Web 2.0, Social Computing and Innovation Forrester references Web 2.0 design as a bottom-up innovation approach led from the customer/user’s point of view. This approach yields greater delivery speed, customer affinity, and ROI for web initiatives.
  • 43. Attributes of Enterprise 2.0 Andrew McAfee “The Trends Underlying Enterprise 2.0” http://blog.hbs.edu/faculty/amcafee/index.php/faculty_amcafee_v3/the_three_trends_underlying_enterprise_20/ Simple, Free Platforms for Self-Expression “ Freedom of the press is limited to those who own one." AJ Liebling Emergent Structures, Rather than Imposed Ones Failure: Nupedia “extensive review process… quality comparable to professional encyclopaedias” Success: Wikipedia “making it easier to correct mistakes, rather than difficult to make them” Ward Cunningham (creator of Wiki ) "What’s the simplest thing that could possibly work?“ Order from Chaos “ If everyone… starts blogging, editing, uploading… isn’t chaos inevitable?  Won’t we simply drown in information? Amazingly enough, the answer seems to be a simple ‘no’” “ Because in addition to building platforms for self-expression and overcoming tendencies to impose structure, Web 2.0 is … rolling out tools to help us filter, sort, prioritize, and generally stay on top of the flood of new online content” Search, Tags, RSS, etc. “ Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and their partners or customers”
  • 44. I have a dream… “ I have a dream for the Web [in which computers] become capable of analyzing all the data on the Web –the content, links, and transactions between people and computers. A ‘Semantic Web’, which should make this possible, has yet to emerge, but when it does, the day-to-day mechanisms of trade, bureaucracy and our daily lives will be handled by machines talking to machines. The ‘intelligent agents’ people have touted for ages will finally materialize.” (Tim Berners-Lee, 1999)
  • 45. The future of Office
  • 47. AKA ...the WDI Africa Team Leader.
  • 48. We’ve become friends since I joined the WDI program.
  • 49. Old Way New Way Gail wants to do things the New Way
  • 50. I have introduced Gail to new tools so she can improve her productivity at work.
  • 52. … she uses Google and Del.icio.us to filter the Internet for the information she needs.
  • 54. … she uses Dogear to find what she needs.
  • 56. … she taps the collective knowledge of the internet through Wikipedia.
  • 58. … she taps the collective wisdom of her team through a Quickr place.
  • 60. ...if she misses a radio show or a bit of TV she catches up using…
  • 62. … if she misses a meeting she pulls the summary minutes from the media library.
  • 64. … through … she knows what her friends are doing 24/7 wherever they are.
  • 66. … she networks using Lotus Connections to stay connected.
  • 68. When she’s not catching up with friends, she’s using her spare time to catch up on her WDI colleagues.
  • 69. She has her own blog … ...where she advertises her WDI activities.
  • 70. So far she’s had many people read her blog from all over the world .
  • 71. In this online community she’s … a respected leader … and a dedicated follower.
  • 72. When she got interested in the WDI her network was…
  • 73. now it’s…
  • 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...
  • 77. ...and her favourite tools to collaborate
  • 78. She is a star at work and no longer sends large email attachments... ...because attachments are stored and shared in a Quickr place.
  • 79. If you ask Gail what she enjoys most at work, she’ll say…
  • 80. … I am able to connect with anybody …
  • 81. … at anytime …
  • 82. … from anywhere ...
  • 83. … using my favourite tools !
  • 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
  • 87.  
  • 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
  • 90. Changes in world markets: The rising tide of globalization Several years ago, we saw change coming Changes in Information Technology: A new computing architecture Changes in client needs: Integration and innovation
  • 91. What customers want How customers ask for Web 2.0 Find People to establish a team Support the team during it's life Capture the knowledge from the team for others How to I find people ? No longer dependent on organisation structure Job Titles are ineffective for finding people Challenges How can I increase the number of connections I can maintain Share my perspective of people with others Fringe / Lotus Connections http://fringe.tap.ibm.com/ Tag yourself and others Find people by others tags Visualise Connections Who Cares Investment Banks and other organisation that form diverse teams in the same way and beyond the way we form project teams
  • 92. What customers want How customers ask for Web 2.0 How do I Support Team Activities ? Activity Centric Computing Challenges An explosion of Teamrooms, Sharepoint sites or QuickPlaces Support for processes that can be templated but are not codified or directly repeatable Lotus Connections (Activities) Implements Activity Centric Computing Task management supported by Email rather than through email Transient storage of the information and resources to achieve an activity Who Cares Organisations with large corporate / head office functions Dependence on knowledge workers Supporting those same short lived project teams with specific objectives but without a common reporting structure. Activity Centric Collaboration Find People to establish a team Support the team during it's life Capture the knowledge from the team for others
  • 93. What customers want How customers ask for Web 2.0 How do support the accumulation of knowledge ? Wikipedia for my organisation Challenges Create a context that is about updating and improvidng information rather than creating Avoid an explosion of Teamrooms, Sharepoint sites and QuickPlaces Wiki’s / Lotus QuickR No strict Taxonomy Low barriers to updating content Who Cares Organisations with large corporate / head office functions Dependence on knowledge workers Web Content Management Structured process for the creation of content through a lifecycle Heavy focus on presentation through strict templates Predefined taxonomy supported by Heirarchial Navigation Wiki based Knowledge Management Agile process for the incremental update of content Without a strict taxonomy Increasingly within access controlled domains eg a Communities Wiki. Find People to establish a team Support the team during it's life Capture the knowledge from the team for others
  • 94. What customers want Queries and opportunities for web2.0 How can my brand be everywhere on-line? Merchants want consumers to be able to access their branded services and content from any on-line location and device How can the business innovate? Provide services as widgets that can be combined to explore and address new opportunities Provided by a Mashup maker environment and catalogue of mashup components and data feeds IBM Mashup Centre Who is asking – Telcos, customer service teams, data analysts, market analysts
  • 95. What customers want Queries and opportunities for web2.0 Give me an immersive environment Customers are asking for our services to help them build virtual worlds for education, collaboration and retail
  • 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
  • 98. What are IBM’s Social Media Marketing Goals Drive a channel for feedback and action Cultivate conversations and build an advocacy base for IBM and our offerings. Better connect with our target audiences : Brand, Content, People Support the expectations of our customers and create a more favorable selling/buying environment. Accelerate Growth
  • 99. IBM Marketing is getting started – by Listening! Listen Interpret Integrate Identify the key venues/places where people are talking Understand what they are saying ; identify the issues that are being raised and understand the sentiment in which they are being spoken Identify where we want to participate – with the right SMEs
  • 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
  • 101. Getting started Build your social network and communities – Join and create groups IBM: Beehive, Lotus Connections External: Facebook, LinkedIn, Twitter, Xing, Sphinn, SecondLife, etc Search for relevant bloggers that relate to your brand Tag with key words and post to an RSS Feeder (aggregates your favourite sites so that you can manage the noise and work more productively IBM: Doggear External: del.i.cious, Digg, Stumble, Consider linkbaiting to drive traffic back to your site (See Google trends) Participate in the conversation Leave commentary that will provide unique points of difference and drive the bloggers social network back to your website. Remember your objectives when responding. Make yourself known. Join bloggers social network IBM BlogCentral, IBM Forum External: Blog, WordPress, Digg, Stumble, LinkedIn Q&A, FaceBook Group Discussion Threads Create your own blog. Consider linkbaiting to drive people to your blog and ultimately to your company’s web site Promote and leverage your social network to create a buzz. Remember Blogging is about the relationship between the blogger and their social network. It is powerful . And lastly…………………..
  • 102. Remember that you are no longer in control – this is about listening and participating in the conversation to build relationships and influence.
  • 103. Real challenges are driving the need for collaborative solutions Need for Innovation Need for Execution Need to Empower Need to Connect 75% of CEOs indicated that collaboration was important to innovation and top source for new ideas To thrive in this environment companies must: Weave communities into the product development process and Execute innovative ideas quickly CEOs: Sources for ideas and innovation Project based environments with more dispersed teams Multi-modes of communicating and working drive the need for simpler ways to structure work activities and share information Work is increasingly more complex - M&A, global companies, remote workers, offshoring, organization changes – leading to more interactions with unknown people Organizations experiencing these conditions must find ways to transcend traditional boundaries, connect employees and help form high performing teams Maturing workforce effecting critical areas of the global working population To address the loss of critical knowledge organizations must harness knowledge capital and educate new workforces with unprecedented scale
  • 104. G lobalization increases the complexity of integrating processes and operations HR IT R&D Operations Sales Finance Headquarters Diverse architectures and networks Functional and cross functional integration Forming effective global teams Integration across enterprises and with customers
  • 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
  • 108. Are you ready? Does your organization have a healthy appetite for change? Have you seeded your organization with visionary challengers and provided them with the freedom to effect meaningful change? Do you manage change as a structured program and measure change management effectiveness? Do you have robust processes in place to incubate new product, service and business model concepts — and redirect investment when required?
  • 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
  • 111. Are you ready? Which of your offerings are breaking new ground, opening entirely new segments or markets? What can you learn from them? Are you systematically evaluating potential geographic markets? How do you achieve the efficiencies of global brands, products and services while remaining locally relevant? When customer preferences shift, are you the first to understand and act on this or do your competitors react more quickly? Are you effectively integrating disparate data and systems to gain new customer insights?
  • 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
  • 113. Are you ready? Are you effectively integrating differentiating capabilities, knowledge and assets from around the world into networked centers of excellence? Does your organization have a globally integrated business design (even if it does not have a global footprint)? Do you have a detailed plan for global partnering and M&A? Are you developing leaders that think and act globally? Do you nurture and support social connections to improve integration and innovation?
  • 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%
  • 115. Are you ready? Is a disruptive business model about to transform your industry? Is it more likely to come from you or your competitors? Do you spend time thinking about where the next disruption will come from? Are you watching other industries for concepts and business models that could transform your market? Are you able to create space for entrepreneurs and innovative business models while continuing to drive performance today?
  • 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
  • 117. Are you ready? Do you understand your customers’ CSR expectations? How are you involving them in solutions? Do you know which NGOs your customers listen to and are you collaborating with those groups? Have you gained insights from current green initiatives that can be applied to your broader corporate social responsibility strategy? Are you offering employees the opportunity to personally make a difference? How do you ensure that actions taken throughout the enterprise — and the extended value chain — are consistent with your CSR values and stated policies?
  • 118. Time’s Person of the Year

Editor's Notes

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