Web Innovation - DBB - social media & blogcamp

Web2.0 goes to work

Natraj Akella Business Head – India / SAAdvanced Collaboration

Lotus SWG IBM India

natraj.akella@in.ibm.com

http://www.flickr.com/photo_zoom.gne?id=464050003&size=o, Yaniv Golan

Web 2.0

http://www.flickr.com/photo_zoom.gne?id=464050003&size=o Yaniv Golan

Installation Deployment

Five Historical Waves of Economic & Social Transformation

Irruption

The Industrial Revolution

Age of Steam and Railways

Age of Steel, Electricityand Heavy Engineering

Age of Oil, Automobilesand Mass Production

Age of Information and Telecommunications

Frenzy Synergy Maturity

Panic1797

Depression1893

Crash1929

Dot.comCollaps

e

Coming period ofInstitutional Adjustment

1

2

3

4

5

Panic1847

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

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 basedon historical data

Virtual business modelsCommand & control business

models

Interactions Transactions

Web

1.0

Web

2.0

A Perfect Storm:

The Four Revolutions

Inspired by: Don Tapscott

IBM Global Technology OutlookIBM Global Innovation Outlook

A A DemogrDemographicaphicRevolutiRevolutionon

A SocialA SocialRevolutionRevolution

An EconomicAn Economic RevolutionRevolution

A TechnologyA TechnologyRevolutionRevolution

Inspired by: Don Tapscott

IBM Global Technology OutlookIBM 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 WebPublishing Commerce Participation

11

The Consumer World: Empowerment as the catalyst

39% of Europeans use open source

software; 29% plan to

Driving New Technology Adoption in the Workplace

Driving New Interactions with Organisations

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

* 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

Consumer power has created new environments and opportunities

EmpoweredConsumer

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/service52%

34%

A A DemogrDemographicaphicRevolutiRevolutionon

A SocialA SocialRevolutionRevolution

An EconomicAn Economic RevolutionRevolution

A TechnologyA TechnologyRevolutionRevolution

Inspired by: Don Tapscott

IBM Global Technology OutlookIBM Global Innovation Outlook

Social

http://flickr.com/photo_zoom.gne?id=1039909856&size=l Todd Huffman

Unlocking Knowledge

http://flickr.com/photo_zoom.gne?id=321433870&size=l Darwin Bell

A A DemogrDemographicaphicRevolutiRevolutionon

A SocialA SocialRevolutionRevolution

An EconomicAn Economic RevolutionRevolution

A TechnologyA TechnologyRevolutionRevolution

Inspired by: Don Tapscott

IBM Global Technology OutlookIBM Global Innovation Outlook

Technical

http://flickr.com/photo_zoom.gne?id=637176822&size=l Brenda Anderson

A A DemogrDemographicaphicRevolutiRevolutionon

A SocialA SocialRevolutionRevolution

An EconomicAn Economic RevolutionRevolution

A TechnologyA TechnologyRevolutionRevolution

Inspired by: Don Tapscott

IBM Global Technology OutlookIBM Global Innovation Outlook

Baby Boomers44 to 63 years old

Generation X28 to 44 years old

Millennials8 to 28 years old

Traditionalists> 63 years old

© 2008 Gonzo fan2007 Creative Commons Attribution License

|

IBM Global Business Services

© Copyright IBM Corporation 2007

“I’ll have someone from my generation get in touch with someone

from your generation.”

…. the workforce is changing by geography, generation, and culture

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

IBM Lotus Software

© 2006 IBM Corporation

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

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)

IBM Institute for Business Value, CEO Study 2006

5% 15% 25% 35% 45%45% 35% 25% 15% 5%

CEOs: Sources of new ideas and innovation

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

IBM Lotus Software

© 2006 IBM Corporation

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

IBM Lotus Software

© 2006 IBM Corporation

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“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.

Changing Nature of Work……Drives a Need to Connect Dispersed Workforces

IBM Lotus Software

© 2006 IBM Corporation

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.

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

®

®

IBM Software Group | Lotus software

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.

Web 2.0, Social Computing and Innovation

The future of Office

Meet Gail.

AKA

...the WDI Africa Team Leader.

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

GailJimMary

Gail's manager

Jim’s manager

Susan

JohnHelen

Roberto

Akira

Chris

Peter

Frequent e-mails

Infrequent e-mails

Wikis + Blogs + SN

Since discovering Lotus Connections, her network has grown to...

...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

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

We made important strategic decisions, and got to work