The next wave of change

Vienna, October 16-17 2017
The next wave of change
Vanessa Carels van de Vliet
IBM Institute for Business Value

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©2017IBMCorporation
Social Connections 11 Chicago, June 1-2 2017Social Connections 12 Vienna, October 16-17 20173
7,800 CEOs 9,550 CIOs 3,475 CMOs 6,175 CFOs1,725 CSCO/COOs 2,500 CHROs
20102003 2005 2015 2017
The 2017 IBM Global C-suite is the 19th in its series, covering 6 roles and 20 industries
IBM’s Global C-suite Study series draw on more than
a decade of research with over 31,000 interviews

In almost 15 years of research, C-suite executives
shared their challenges and expectations
18
Design-driven
Platforms
Augmented
reality
Cognitive
Cyber
security
Value
networks
Fluid
employees
Blockchain
15
Agile
Digital
invaders
Journey
mapping
Big data
Reach
market first
Ecosystems
Digital
acumen
Cloud
12
Customer
activation
Cross-industry
competition
Social data
Predictive
analytics
Operational
transparency
Value chain
collaboration
Future proof
employees
Social
09
Shared
values
Organizational
openness
Customer
experience
Visual
dashboards
Digital-physical
strategy
Partnering for
innovation
Lower time to
competence
Mobile
06
Creativity
New
channels
Customer
collaboration
Integrated
organization
Flat world
Global
integration
Partner
for talent
Web 2.0
03
Change gap
Industry model
innovation
Social
responsibility
Scenario
planning
Simplify and
standardize
Responsiveness
Work-life
balance
Interconnected
Experience
New business
models
Market
activation
Actionable
insights
Responsive
operations
Orchestrated
ecosystems
Restless talent
Emerging technologies
C-suite topic
Year
Immersive
innovation
Back to core
Real-time
interaction
Systems of
insights
Pervasive
security
Networks
of networks
New collar
roles
Augmented
intelligence
20

Internal tools and techniques to identify the next wave
Still, CxOs mostly rely on conventional techniques
to identify new trends
80%
63%
51%
46%
23%
13%
Brainstorming Predictive
analytics
Simulations Prescriptive
analytics
Crowd-sourcing Cognitive
computing

Market leaders invest in the foundations needed
to create new opportunities

“One of our main priorities is facilitating
an ‘anywhere workplace.’ There’s huge
demand for virtual and mobile working
to enhance flexibility.”
Gertrud Ingestad, CIO, European Commission, Belgium

The new digital environment requires HR to focus on
developing emerging competencies
Sense changes in the environment and
understand employee experience on a
dynamic basis
Social tools to capture and
amplify employee voice

Enterprise innovation in the cognitive era
Igniting cultural transformation for the future of work

All IBM employees were provided the opportunity to engage
in the experience of the “Cognitive build”
Form self-selected
teams for idea
generation
Conduct agile
sprints to build
out viable ideas
Discover and
select top ideas
for investment
through
crowdfunding
Bring ideas to life
in global pitch
events
Learn about
cognitive
computing and
new approaches
to problem solving

Creating the learning foundation
Two live sessions, hosted by IBM CEO Ginni Rometty, were
complemented by 22 brief learning modules covering a wide
variety of topics:
 Design thinking and agile work methods
 Cognitive data
 Tools and Watson APIs
 What makes a good team
 Perfect and promote an idea
 Where and how to invest
 Turn ideas into solutions

Bringing people and ideas together
IBM employees were encouraged to come up with
ideas in one of three key areas:
1. Bringing cognitive capabilities to client opportunities
2. Infusing cognitive into products and services
3. Transforming IBM’s own processes with cognitive
Anyone could register an idea and recruit team members, or join
an existing team

Forming self-directed project teams around ideas
61%
10%
18%
11%
Role
distribution
15%
16%
14%
12%
11%
8%
7%
5%
12%
Team
size
All-around contributor
Business owner/sponsor
Engineer/developer
User experience/
creative designer
Three
Four
Five
Six
Seven
Eight
Nine
Ten
More than ten
“My team was made up of people I’d never get to meet in my day job – amazing
research scientists, developers, designers and people from countries that I may never visit.”
– Cognitive Build team member

Team facts
In enterprise crowd funding, projects with more team members
are more likely to be successful in collecting funds
 Average team size was 6 to 7 members
 The top 40 funded teams averaged more than 9 members
 The 10 most funded teams had an average of 13 team members
Distance also matters:
 Investors on average spent 67% of their allocated funds on
projects originating from within their own country
 57% of their virtual dollars was spent on projects from within the
same business unit
*

Applying agile and design thinking in idea generation
Almost 4,000 teams felt confident to take their ideas to the next
level and submit them to cognitive experts for feasibility reviews
The criteria:
 Is it a cognitive use case?
 Is the data available?
 Is the idea feasible – ideally within 12 months?
“The Build awakened the imagination and creativity of IBMers. Seeing
the numerous innovative ideas makes me more proud to be an IBMer.”
– IBM employee

Solving myriad topics – with clear client focus
World view
2%2%
3%3%3%
4%4%4%
5%5%5%5%
6%
8%8%
15%
18%
Client
support
Data
analytics
Collabor-
ation
Sales and
marketing
Healthcare Language Cloud Other Social Human
resources
Information
management
Education Mobile Internet of
Things
Machine
learning
Security Search

Solving myriad topics – with clear client focus
Europe
3%
2%
4%4%
3%
4%4%
6%
5%
2%
3%
5%
9%
12%
5%
14%14%
Client
support
Data
analytics
Collabor-
ation
Sales and
marketing
Healthcare Language Cloud Other Social Human
resources
Information
management
Education Mobile Internet of
Things
Machine
learning
Security Search

Crowdfunding the best ideas
Each IBMer was allocated $2,000 of virtual currency to
“invest” in what he or she thought were the most valuable out of
2,603 projects that proceeded to the Invest phase.
IBM suggested that employees invest in ideas that were:
 User-centric, with clear client value
 Novel or disruptive to a key market or industry
 Differentiated, with potential to create competitive advantage

Invest facts
Teams are more successful if they extensively collaborate on
their idea and provide insights in follow-up options and costs:
 Teams raised more funds if they were able to attract more
comments and likes
 Teams who used promotional material such as video, animations
and a step-by-step description of their solution, also attracted
more investors
Encouraging employees to promote their ideas through a variety
of methods and events proved to benefit the most creative teams
*

Teams could encourage their
colleagues to invest through in-person
events and social sharing:
Through local booths, poster sessions,
online collaboration tools, email
campaigns and community
presentations, teams expressed their
creativity and marketing prowess.
Promoting ideas through local “invest stations”
around the world

Resulting in record-setting participation levels
2
2
50 semi-finalists:
 The 10 most funded teams overall
 The top 10 from each Build focus area
⎻ Bringing cognitive capabilities to client opportunities
⎻ Infusing cognitive in products and services
⎻ Transforming IBM’s own processes with cognitive
 10 additional teams selected by cognitive experts and IBM
leaders
⎻ Based on key industry alignment and…
⎻ Potential for immediate impact
More than
225,000
IBMers invested
$291 million
virtual dollars in
their favorite ideas

Pitching the prototypes to an executive board
The semi-finalist teams had 3 weeks to build their
prototypes, guided by experts
They had only 4 minutes to pitch the idea to business leaders
from the market, industry or process area
From the 50 semi-finalists, 8 teams were selected to advance to
the final round
“In my ten years at IBM, those two days
in Austin were my absolute best.”
– Watson health excutive

“I am totally on board if we do this again – wouldn’t
think twice. I learned so much about how people
think, better understand creative ideas, how to
bring things together, build things with cognitive,
challenges that IBM and clients are dealing with.”
Cognitive expert, IBM

Local Cognitive Build competitions broadened
sponsorship opportunities and team recognition
Local and
relevant
Targeted at key
regional and
industry
challenges
Affording
visibility
to promising
ideas
More than
60 ideas
won local
competitions

Lessons learned
 The importance of action beyond ideation
The combination of cognitive tools and collaborative thinking
allowed ideas to proceed rapidly from initial insight to viability.
 The importance of creating safe spaces to work in new ways
Cognitive Build gave opportunities to experiment with new tools
and techniques in controlled, low-risk environments.
 Organization-scale creativity requires process, structure and
infrastructure
The combination of cognitive tools and collaborative thinking
allowed ideas to proceed rapidly from initial insight to viability.
*

Are you ready to engage your
workforce?
The following questions can help you get started on your journey
to engage your employees in the cognitive era:
 What will it take for your entire workforce to embrace new ways
of working such as agile and design thinking?
 How can you capitalize on the diversity, collective intelligence
and entrepreneurial mindset of your workforce to deliver value?
 What innovative programs and events have the power to ignite
the cultural change necessary to reinvent your organization?
 How could cognitive capabilities improve your processes,
offerings and experiences?
?

Join the
conversation
https://www.ibm.com/services/studies/csuite/
http://www.ibm.com/iibv
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Insights from IBM’s Global C-suite Study

The next wave of change

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