This document discusses balancing internal and external collaboration to improve innovation. It describes IBM's integrated product development process which brings together multiple teams including an integrated portfolio management team, project development team, and investment review board to share market insights, develop strategies, and manage new product development from concept through launch. The process aims to improve innovation through collaboration between functions and continuous feedback from customers and markets.

1. Socially Synergistic Enterprises
the human side of the smarter planet
Balancing Internal and External Collaboration to Improve Innovation
Marcel Baron
10 June 2011
5th Annual
New Product Development Strategies

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Team-Based Management
Integrated Product Development Team Relationships
Integrated Portfolio
Management Team (IPMT)
Project Development Team
(PDT)
Investment Review Board (IRB)
*May not exist in specific Brand
FunctionalManagement
DCT/OT &
functional teams

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IBM – Integrated Product Development

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Integrated Product Development (IPD) Overview
Market Information
Customer Feedback
Competitor Information
Technology Trends
Current Portfolio
Integrated Portfolio Management Team (IPMT)
C
O
N
T
R
A
C
T
Develop & Qualify Launch Life-cycleConcept Plan
Project Development Team (PDT)
Concept
DCP
Plan
DCP
Availability
DCP
End-of-Life
DCP
IPMT
Sponsor
Products
Solutions
Profit
Satisfied
Customers
Project Proposals
Strategy
Marketplace insights
Opportunity
Customer Targets
Value Proposition
Messaging
IBM Marketing Approach:
1.0 Understand the
Marketplace
3.0 Plan/Manage
Offerings/
Solutions
4.0 Plan and
Manage Programs
5.0 Execute
Programs/
Measure
2.0 Develop/ Manage
Strategy &
Positioning

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H3 investigation feeds H2 growth and finally H1 exploitation

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EBO investment decision criteria should evaluate market,
technology, business, and organization attractiveness
Organization Attractiveness (%)
IBM Strategy Fit
EBO Strategy Fit
Core Competencies/Skills
Technology Innovator
Capability
Business Unit Receptivity
Market Attractiveness (%)
Market Size
Market Trends
Customer Pull
Competitive Position
Strategic Control Points
Business Attractiveness (%)
Business Model (Value Chain)
Differential Advantage / Value
Proposition
Value Capture/Profit Model
"Game Changer" Potential
Market Timing
Technology Attractiveness (%)
Technology Maturity
Technology Trends
Standards & Architectures
Intellectual Property
Solution Positioning
Source: Compilation of IBM's EBO Community of Practice ideas and practices
% weighting may be applied, if needed
Example

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Innovation @ IBM
https://www.collaborationjam.com/

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WHERE ARE YOU IN BECOMING A SOCIAL BUSINESS ?

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Socially synergistic enterprise solutions
let businesses and other organizations
combine people, data, and analytics in new
ways to achieve revenue growth, discover
opportunities, enhance customer and partner
relationships, improve resiliency and
efficiency, and achieve improved outcomes.
These solutions will be facilitated by a framework
and consumable components to effectively
integrate computation with human cognition
and action.
Socially Synergistic Enterprise Solutions:
The Human Side of the Smarter Planet

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Convergence of Social and Analytic Technologies Transform the
Way Businesses Operate
Socially Synergistic Enterprise Solutions
New top-line opportunities, better relationships with customers and partners,
enhanced talent pool, increased resiliency and efficiency
Data
 Data aggregation
 Smart filtering
 Meaning extraction
 Consumable analytics
 Process orchestration
 Stream processing
Analytics
 Customer Sentiment
 Unmet Needs
 Talent Discovery
 Reasoning and Decision Support
 Crowdsensing, Crowdsourcing
 Teaming, Incentives, Motivation
Society
Organizations
Teams
Individuals
Social
Social
Data from and about People
Physical
Sensors & Streams
Enterprise
Business
Process
Transformation

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Adoption of Social Tools is Increasing Rapidly
Public
Companies plan to increase spending on social despite recession
Growth in Adult Usage of Social Network Sites, 2005-2009
Enterprise
Fortune Global 100 Companies
Companies with ...
65%
54% 50%
33%
Twitter
Accounts
Facebook
Fan Pages
YouTube
Channels
Corporate
Blogs
Twitter Accounts
65%
72% 71%
40%
67%
Total US Europe Asia LatAm
Facebook Fan Pages
54%
69%
52%
40%
33%
Total US Europe Asia LatAm
50%
59%
52%
35% 33%
Total US Europe Asia LatAm
YouTube Accounts
US Mobile Subscribers
Accessing Social Sites
Source:Burston-Marsteller
Jan-09 Jan-10 Change
Facebook 11,874 25,137 112%
MySpace 12,338 11,439 -7%
Twitter 1,051 4,700 347%
(Thousands)
Source:comScore MobiLens

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Social Technologies Used in Point Processes
Social network-based advertising
achieved 70% ROI, outpacing
TV and Online marketing
Social computing and community forums
lower customer and partner support costs.
One question viewed 37k times, saving ~$70k.
Location based social incentives
Automotive industry exploring integrating social
capabilities to enhance car experience
Sold 2.5 million kits
leveraging social and
game techniques
Integrated OfferingIntegrated Offering
Crowdsourcing new features.
Reports $3M in revenue using Twitter
to notify customers of deals
Marketing, Promotion
Crowdsourcing new product
and promotion ideas increases
customer loyalty
MarketingMarketing
Connections-based employee social
collaboration with over 500 cross-silo
communities. One generated 118 ideas
being implemented.
Internal
Promotion Support Promotion
Listening to buzz on Youtube and
Facebook led to creation of High Fructose
Corn Syrup-free Hunts Ketchup

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Issue discovered in enterprise
sales and market-basket data
Losing share to a competitor in a key
market
Correlation and analysis of external
(message boards, blogs, newsfeeds,
tweets) and internal (customer calls,
sales, ad spend, KPIs, etc.) to identify root
cause
topic identification
sentiment and brand
association analysis
100000+
discussio
n forums
30,000+
news
feeds
2 billion+
blog
postings
twitter
activity
IBM DIFFERENTIATOR: Ability to integrate and analyze internal enterprise and external data.
Marketing Managers and other employees diagnose issue, develop solutions,
make go/no -go decisions. Collaborative Reasoning decision tools structure
process, populate with relevant data, support what-if predictive analyses.
Question arises on whether shelf placement has changed.
Query broadcast to supermarket field reps to crowdsource quick response,
which is automatically tabulated, comments analyzed, insights extracted and fed
back into decision space.
Customer Care and Insight
Transforming how a Company Manages its Brands
Large consumer
product company

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Branch office
Web
IVRCall Center
Enterprise
products
and services
Unstructured
Call logs, Transcripts
Emails, Surveys
Self Service
Agent
Structured
Customer/Product
Transaction Data
Structured
Agent Data
 Customer Intelligence
 Process Understanding
 Dissatisfaction Drivers
 Sales Drivers
 Agent Performance
Enterprise Contact Points
Customer
Data
Analytics
Insights
Integrate and Analyze Structured and Unstructured Data
“… helped us improve our operational efficiency and customer
satisfaction. This enables us to take swift pro-active mitigation
action to improve the customer’s satisfaction and help our client
retain the customer… “
Suppiah Karuppiah, Director and Senior PE, GM Cars Account
“…given us a tremendous differentiation in the market place
to realize significant business impact. This really provides us
an edge over many of our competitors who simply don‘t have
the technology to deal with unstructured data..”
Bill Payne, VP, CRM and Industries, GPS
Research Asset: Voice of the Customer Analytics
Managed Service Providing Actionable Marketing Insights

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Prototype: used at Lotusphere,
USAID WorldJam, IOD, VizWeek 2010, etc.
Current Project: Visual Backchannel Monitoring Twitter activity
Trending terms on twitter fed to
internal analytics to recognize
problem and automatically
create team for quick action

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Development
Goals
1. Project needs talent
2. Determine best mode of work:
individual, team, crowdsource
3. Find best available people
and teams based on range of
organizational and personal
goals and context
skills
performance in similar projects
who has worked well with whom
personal development goals
experience
motivations and incentives
interests
organizational future needs
and development goals
Social
Analysis
Collaboration
logs
Outcome
Repositories
Skill
Modeling
Workforce Optimization
Transforming how IBM Optimizes its Services Workforce
4. Orchestrate, support and
analyze tacit work
Collaborative Supply and
Demand Prediction
Developing Talent
Grow employees through traditional and
collaborative learning and development
Sourcing Talent
Find and acquire talent in the right place
and time to meet business objectives
Retaining Talent
Retain desired talent through innovative
performance and compensation initiatives
Managing Workforce
Improve workforce productivity &
efficiency

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