Using IBM's Social Business Patterns to drive new business opportunities. Presented at #ibmconnect2014 at Business Partner development day

1. BP403: Driving Business
Opportunity with Patterns
Scott J Smith, WW Lead, Social Business Industry & Value, IBM
Alan Hamilton, Social Business Executive Consultant, IBM
© 2014 IBM Corporation

2. Topics
 Repeatable approach to ROI
 Path to LOB: Patterns facilitate conversation in LOB’s
language
 “Deep dive” example
 What’s new
 Teaming to scale
2

3. LOB is making SW decisions & increasingly requires
integrated software solutions
New technology investments influenced
by line of business executives
80%
61%
“The explosion of new industry solutions will
dramatically shift who the IT buyer is. IT
vendors need to become more adept at
building offerings for LOB executives and at
establishing messages for, and relationships
with, these increasingly influential IT buyers
IDC
“This is the biggest shift in the last 20 years.
New buyers want solutions to business
problems, not just to buy products.”
Gartner
2013
3
2016
Sources: IDC: The Implication of Shifting Technology Buying Centers on
Your Business; IDC Predictions 2013: Competing on the 3rd Platform
LOB executives will take the lead
decision-maker role in more than half of
these investments

4. Social: The ROI is enticing…
$900B –
1.3T/yr
from
McKinsey1
4

5. …except it’s hard to prove in my organization
%
88
can’t
accurately
measure ROI
5
%
52
ROI is biggest
frustration

6. Summarizing the issue
Thank you TechCrunch
[Clients] want social technologies that
become part of their work. Too
often, enterprise social networks act as a
separate silo where people
interact for the sake of using a social
6
media solution. That needs to change.

7. The 3 Ps: Foundation of Repeatable ROI
work
Processes
7
people
Interact;
separate silo
People
Patterns

8. Repeatable Patterns
8

9. From general to specific ROI
+15% revenue 1
+20% customer sat1
+20% innovations1
+20-25% productivity 2
↓ 50-83% M&A failure
rate3
+30% access to
experts1
↓ injury claims by 9.4%4
↓ meetings, reporting calls
raising productivity by 2025%4
+20% employee retention2
+30% access to experts1
9
+15% revenue 1
+20% customer
sat1
+30% access to experts1
+20-25% productivity2

10. Patterns: The path from pain points through to solution
Pattern
Buyers
Pain Points
Value Props & ROI
Customer
Engagement
CMO, Digital Channel,
Sales, Cust Service,
Contact Center, CHRO
• Limited consistency across channels
↑ Sales / Revenue
• 66% of consumers change service providers ↑ Brand awareness
from poor service
↑ Customer Sat
Recruiting &
Onboarding
CHRO, COO, LOB
• Accelerating time to productivity
• Attracting talent that match skill & culture
↑ Speed to value
↑ Employee engagement & revenue
↑ Retention
Innovation
R&D, Product Dev,
CMO
• Less innovative than competition
• Losing share
• Limited product pipeline
↑ New products
↑ Speed to market
↑ % Revenue from new products
Mergers &
Acquisitions
COO, Integration Exec
• Over 50% of M&A fail to achieve plans
• Overcoming two cultures
• Losing focus on market
↑ M&A success rate (>50% fail)
↑ Retention of talent
↑ Revenue
Workplace &
Public Safety
COO, EVP Operations,
Safety Exec
• Incidents impacting morale and brand
• Slow emergency response
• Citizen safety
↓ Incidents
↑ Workers comp savings
↑ Saving lives
Expertise &
Knowledge
LOB & Functional Execs
• Higher cost of not knowing “experts”
• Customers disengage from slow response
↑ Speed
↑ Efficiency
Supply Chain
EVP Manufacturing,
Supply Chain Officer
• Unreliable demand forecasts
• Matching supply & demand
• Geographic, time, & language barriers
↑ Demand forecasting
↑ Reaction for supply disruptions
↑ Capacity planning

11. The Anatomy of a pattern
The challenge engaging customers
• 66% left due to poor service; cost =
$5.9T1
• Social customer tells 42 of good
experience; 53 of bad2
• Social Customers more loyal &
spend 40% more3
11

12. Social builds Ongoing Relationships across
touchpoints & channels
Mobile
Self Service
Face-to-Face
Store/Branch/Location
12
Social
Contact Center
Kiosk
Maintenance/Repair

13. Amadori
Engaged younger audience
+125% new visitors
Reachable network of 14
million
13

14. Are these examples repeatable?
14

15. 5 step recipe to repeatable success and ROI
1. Start with business priorities
2. Identify roles, audiences, &
processes
3. Demonstrate current pain
4. Embed social
5. Leverage process metrics
15

16. 1. Start with Business Priorities
Omron
Business Challenge
Sales by country; clients span Geo
2 Divisions sell to same client
Results
Transform sales to be:
- Pan Geographic
- “One Omron to Client”
16

17. 2. Identify roles, audiences & processes
Generalized Sales example from client engagements
Sales
Product
Management
Large Client
17

18. 3. Demonstrate the pain
Challenges
Sales
Large Client
Knowledge of client
Where to get help
Understanding proposal
Ways to engage
client
18
Communicating needs
Predicting benefits
Learning from similar
companies

19. 3. Demonstrate the pain
Challenges
Product
Management
Sales with
Expertise
Training sales team
Want to help
Client awareness
Don’t know where help is
needed
Innovating products
19

20. 3. Demonstrate the pain
Process interactions
Client
Sales +
Expertise
Falling sales and
market share
Sales
High turnover in sales
Not leveraging
expertise
Limited product
innovation
20
Industry
Peer
Product
Management

21. 4. Embed Social
Bolton
21

22. 4. Embed Social
New process interactions
Sales with
Expertise
Sales
Experience
Client
Sales
Product
Mgmt
Experience
Product
Management
Client
Experience
Industry
Peers
22

23. 5. Leverage process metrics
Sales process metrics!
Conversion
Rate
Revenue per
Customer
Cost of
Sales
+15%
+10%
-10%
Sales
Product
Mgmt
Client
23

24. 5. Leverage process metrics
Calculating baseline
Conversion
Rate
Revenue per
Customer
Cost of
Sales
Sales
Current conversion rate
Product
Mgmt
Conversion rate with solution
Total # annual transactions
Client
24
Average transaction value

25. “Sub Patterns”
25

26. 3Ps + 5 Steps = Repeatable Success and ROI
Processes
People
1. Start with business
priorities
2. Identify roles, audiences,
& processes
3. Demonstrate current pain
Patterns
4. Embed social
5. Leverage process metrics
26

27. Business Partner are critical to success
How Patterns Help
Process is language of
business
Show solution ROI
Show solution in dayin-the life (DITL)
Repeatable to any
process
27
Call to Action
Use existing patterns
Create new pattern
examples
Create future state
DITLs embedding
solutions
Leverage Sales Play

28. IBM’s provides unparalleled experience on how to achieve
value
Learn
CXO Studies
Business Patterns
Establish Strategy
Define Business Value
Whitepaper
Act
28
Accelerate Adoption

29. Additional Questions?
Stop by the Social Business Patterns
Lounge (Dolphin, Europe 5)
Monday
1PM - 6PM
Tuesday
9AM - 6PM
Wednesday 9AM - 6PM
Thursday
9AM - 12PM
Talk with experts about the ways that
your business can benefit from Social Business Patterns!
29

30. Thank You
@smith13sj
30

31. Please join us at the 2014
Business Partner Reception
Monday, January 27 | 8:30pm-10:00pm
Atlantic Dance Hall on the Boardwalk
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34. Engage Online
 SocialBiz User Group socialbizug.org
– Join the epicenter of Notes and Collaboration user groups
 Follow us on Twitter
– @IBMConnect and @IBMSocialBiz
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– Participate in the IBM Social Business group on LinkedIn:
 Facebook https://www.facebook.com/IBMSocialBiz
– Like IBM Social Business on Facebook
 Social Business Insights blog ibm.com/blogs/socialbusiness
– Read and engage with our bloggers
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35. Acknowledgements and Disclaimers
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