Global hr forum2008-scott j smith-web 2.0, social networking and enterprise value

IBM Global Business Services

Scott J SmithPartner & Global Practice Leader –Knowledge & Collaboration

Web 2.0, Social Networking and Enterprise Value


© 2008 IBM Corporation

Newsstand 2.0

2 Web 2.0, Social Networking and Enterprise Value



My Space = 8th Largest Country in the world (Japan & Mexico)

230K People a day230K People a day106 Million Sept 06106 Million Sept 06

More People in More People in FacebookFacebook than than entire country of Sweden entire country of Sweden




It’s more than fun




Cyworld: 90% of 20s; 25% of all Korea




Naver: 2 Billion Searches in Aug 07




Wisdom of the Crowd




Data to PeopleData to PeopleUser ExperienceUser ExperienceSocial NetworkingSocial NetworkingSharingSharingTrust, ReputationTrust, ReputationEnd User ContributionEnd User ContributionMore it used more valueMore it used more value

Web 1.0Web 1.0 Web 2.0Web 2.0




What is driving this???




Demand for Growth

§ Innovators grow faster

§ 75% of CEOs indicated that collaboration was important to innovation

§ Top sources of innovation were employees, businesspartners and customers

“It's not what work you expect Employee #1234 to accomplish per person-month of work.

It's the work you never expected would happen, that suddenly creates new business.”

Drives a Need for Innovation

IBM Institute for Business Value, CEO Study 2006




Changing Demographics

19% of the entire American workforce holding executive, administrative and managerial positions will retire in the next five years

Source: Beazley, et. al, Continuity Management, Mackay, Alan. “Mature Age Workers: Sustaining Out Future Labor Force.” An Ageless Workforce - Opportunities for Business' Symposium Conference Paper. August 27, 2003. www.ageing.health.gov.au/ofoa/wllplan/aawpapers.htm, Time to act quickly on aging.” The Japan Times Online. August 23, 2002 www.japantimes.co.jp/cgi-bin/getarticle.pl5?ed20020823a1.htm, A. Paulli, “Pension systems and gradual retirement in Italy”, September 2000, p.17

In the year 2000, there were more people receiving pensions in Italy than people working (22 versus 21 million)

Within the next seven years, 33 million people in Japan (26% of the population) will be over 65 years old

By 2016, the number of individuals aged 60-64 in Australia is expected to almost double

Drives a Need to Empower New Generation of Business Leaders




Project-Based Work Environments

§ Most work today involves dynamic processes being delivered by dispersed groups of people

§ Making business decisionsinvolves more than just traditional IT applications

§ People need simple ways to structure adhoc activities

Adapted from: *C. Hill, R. Yates, C. Jones, S. Kogan, Beyond predictable workflows: Enhancing productivity in artful business processes, IBM Systems Journal, Vol. 45, No. 4, 2006, http://www.research.ibm.com/journal/sj/454/hill.html

Drives a Need for Improved Activity Execution




Changing Nature of Work

§Work environments are more complex– Matrixed organizations– Organization changes– Mergers / Acquisitions

§Work environments are more disconnected

– Global companies– Outsourcing – Remote workers

§More interactions with unknown people

Drives a Need to Connect Dispersed Workforces




% trust somewhat or completely

Source: Forrester Research and Intelliseek

Low Trust in Advertising

“Indicate your level of trust in the following types of ads”

Drives a Need to Connect Consumer in Communities




How to achieve organizational value


FoundationFoundation

GovernanceSocial CapitalTechnology

EnablersEnablers

LearningExpertsContent Collaboration /Social Networking

Roles



Search increases value with “people”


Experts on the topic 1 Click Away

Tagged Websites 1 Click Away



Enabler: Automated Expertise Identification


Relationship to Experts



Enabler: Automatically Map the Network




Embed Collaboration for Value


Experts Automatically

Suggested within Core Application



ROI Model: Role Interaction Patterns


ProductExperts

“Friend”

Customer Sales

SpecificSales

Experts

ExpertiseEngine

CRM with “Expert Links”

RewardsFor assisting

saleSponsoredExternal

Community

ProductExpert

SpecificSales

Experts

Sales Process Example



Role Interaction

Enabling Components

Contribution to ROI Element

Conver-sion Rate

Revenue per

Customer

Cost of Sales

Time to Sale

Sales ↔Product and Sales Experts

§Expertise engine§Integrated Instant Messaging into core CRM to show experts and documents in context

H H M H

Sales ↔Customer

§Instant Messaging§Community Tools M M M

Company ↔Facilitated Customer Community

§Full social networking capabilities enabling customer-customer interaction§Company sponsored events§Analysis of community interaction

M H M

Role Patterns: Tangible ROI




Summary and Call to Action

§ Social Networking is for the enterprise now

§ Embed in core processes & applications

§ Embedding = adoption

§ Role Interaction Patters = measurable, repeatable ROI

§ Finally, economies of scale and value from global talent!



Thank You

Global hr forum2008-scott j smith-web 2.0, social networking and enterprise value

Documents

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business

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italy

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