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Become a Social Business and Get Real Business Results (IBM’s Journey to Social Business) September 26 th , 2011

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IBM’s Journey to becoming a Social Business Mobile Office 1990s Traditional Office 1980s Collaboration 2000 Social Networking 2004 Social Business 2008 and beyond 400,000+ employees in over 200 countries 50% workforce has less than 5 years of service 71% of employee population is outside of the US 50% of employees work remotely, not from a traditional office Social Business

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IBM’s Journey to becoming a Social Business Phase 1: Access The Website Model Phase 2: Integration The Audience Model Phase 3: On Demand The Roles Model Phase 4.x: End-User The Social Model The org chart online Focus: Providing information Benefit: Universal access Problem: Site proliferation Cross-enterprise platform Focus: Web-enabling functions Benefit: Separating content from vehicle Problem: Competing centers of gravity Sense and respond enterprise Focus: Real-time expertise location Benefit: Fluid, collaborative decision-making Problems: Governance and cultures Communities of practice Focus: End user driven content Benefits: Combining social capital with intellectual capital Collective intelligence across all organizations IBM IBM Services Software Servers Europe Americas Asia Research Technologists New Hires Developers Sellers Marketers Managers IBM IBM Company News Sales Benefits Training Competitors Employee Knowledge Industry News CustomerData Industry Sales Marketing Research Dev Federal Social Business

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IBM’s Journey to becoming a Social Business Social Business <ul><li>Improved Company agility & responsiveness </li></ul><ul><li>Reduced time to complete projects by 30% </li></ul><ul><li>Increased use of “software assets” by 50% </li></ul><ul><li>Cut component costs by 33% </li></ul><ul><li>Reduction of over $100M/year in help desk support costs </li></ul><ul><li>Increases in Employee Satisfaction </li></ul><ul><li>Increased Employee productivity </li></ul><ul><li>Dramatic increase in innovation (employee crowd sourcing ideas identified 10 high potential incubator business which were funded with $100M) </li></ul><ul><li>Improved employee networking and expertise </li></ul>Why Social Business at IBM? IBM and Social Media Business Impact

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IBM’s Journey to becoming a Social Business One Million Number of daily page views of internal wikis, which are internal information storing websites Seventy Thousand Number of active employee profiles in IBM connections, IBM’s internal social networking community Fifteen Million Number of downloads of employee-generated videos/podcasts 126 Million Number of minutes employees participated in on-line LotusLive meetings in the first half of 2010 Forty Million Number of Sametime instant messages sent per day, by IBMs 400,000 employees Five Hundred Thousand Number of participants in company Crowd Sourcing “Jams” Social Business

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IBM’s Journey to becoming a Social Business Social Business

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IBM’s Journey to becoming a Social Business “ IBM has been “walking the social media walk” for four decades, a formidable task for a company that currently has a globally dispersed team of 400,000.” “ IBM is moving itself and its clients well beyond social media into a new era of collaboration, insight sharing, and lead generation it calls Social Business.” “ I was in the middle of writing my book and conducting in depth research of companies that were at least talking about or referring to a social business. One company seemed to dominate the conversation, IBM . I watched more closely and realized that there were literally hundreds of IBM employees collaborating with the community and adding value to the “social business” conversation.” - Michael Brito, Author “ As a global technology leader focused on delivering forward-looking technology and solutions, IBM is no stranger to taking a unique approach in order to generate a stronger end result. To encourage discussion and foster a cultural affinity for social media across its vast network of 400,000 employees, countless partners, and global customer base, IBM made social engagement a key responsibility of every employee . Through a collaborative effort led by marketing, employees embraced social media to help get the word out about IBM solutions and events. The result was a measurable increase in awareness and tighter collaboration among IBM employees to better meet customer needs.” Social Business

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Value of Social Business for R&D and New Product Development (*) “The rise of the networked enterprise. Web 2.0 finds its payday” – McKinsey Global Survey Results, 2010 McKinsey estimates Social Business reduces time to market by 20% and increases the number of innovations by 20% Social Business

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IDC estimates Social Business improves employee productivity by 11-30% Source :IDC Social Business Survey, September 2010 , N = 700 Social Business