IBM Service Thinking Hypothetical Case Analysis

Olga Stryk, MBA

Global 2000 Innovation-

IBM Service Thinking Project

Identifying opportunities for IBM and

partners in the innovation space:

Apple, Amadeus IT Holding SA,

SocialFlow

IBM has various offerings powered by both traditional and social business platforms• Global Fortune 2000 Ranking: 20• $104 Billion in Revenue in 2012• $20 Billion financing for acquisitions through 2015

* CNN Money* IBM annual Report

Products• Wide range of

products across different industries

• Software, Hardware, Storage, Servers, PCs & others

• Products are typically prepackaged and standardized

Services Solutions

• Business Services, including business strategy & consulting

• IT services including cloud, big data and Integration services

• Outsourcing, training, financing and other services

• Spearheaded by global IBM services

• Feature a complete turn-key offering

• Can be tailored to corporation size

• Standardized or customized to customers’ unique problems

• Can be leveraged for social business offerings

*Other IBM Initiatives

• Smarter Planet• Business Analytics• Growth Markets• Cloud Initiative

Social business trends are transforming the way companies are doing business

SOCIAL BUSINESS TRENDS

• New ways to communicate in personal lives using social and collaborative technologies

• Adaptation of workforce technologies to support increasing social interactions

• Social and collaborative technologies contribute to firms’ competitive advantage

• 49% of enterprises planned to invest in Enterprise Social Business in 2012 (source: Forrester Research, Inc.; “Mapping the value of social business and collaboration”)

• Telecommuting practice is getting more wide-spread

Social Business

SaaS has driven companies to embrace social business platforms

* Source: Forrester Research, Inc.; “The Forrester Wave: Cloud Strategies of Online Collaboration Software Vendors”

* Source: Forrester Research, Inc.; “The Forrester Wave: Cloud Strategies of Online Collaboration Software Vendors”

IBM offerings are leading the social business sphere with strong strategy and performance among competitors

IBM provides comprehensive social business offerings that empower companies to better serve their customers

*Source: IBM Social Business offerings

Features

• IBM enterprise experience translates into competitive online collaboration offerings

• Offering both on-premise collaboration software and hosting services of collaboration technologies

• Internal and external collaboration

• Cloud based

• Available via Android, iOS and BlackBerry

Offerings

• Social Networking Platform to engage employees, partners, clients (IBM Connections, IBM Connections Suite, IBM Notes and Domino, IBM Sametime)

• Social Analytics Platform to analyze information gathered through social media (IBM Connections, SPSS Modeler, Cognos 10)

• Social Integration Platform to give users a single point of access to the applications, services, information and social connections (WebSphere Portal family of offerings)

• Social Content Platform to share ideas, locate expertise, and access relevant knowledge via professional social networks (Connections Enterprise Content, Content Navigator)

Service thinking analysis of Apple

“Ability to browse through products at the Apple Store on one’s own terms, or to dialogue with the repair folks at the Genius Bar are quite co-creative. Many “Experience Environments” are smoothly linked together.”

“The amazing products that we’ve introduced in September and October, iPhone 5, iOS 6, iPad mini, iPad, iMac, MacBook Pro, iPod touch, iPod nano and many of our applications, could only have been created at Apple and are the direct result of our relentless focus on tightly integrating world-class hardware, software and services.”

Co-creation

Components

Service System

“Apple makes extensive use of contact manufacturing services, with all of its production of notebook PCs outsourced to Quanta Computer Inc., Foxconn Electronics Inc. and occasionally Pegatron Corp., which are original design manufacturers (ODMs) and EMS providers based in Taiwan that have manufacturing operations in China.”

Service thinking analysis of Apple

“At Apple, we strive to make world-class products that deliver the best experience possible to our customers.”

“Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices.  ”

R-T-I

Multi-sided Metrics

Glo-Mo-So

“…..Apple’s immensely creative employees and world class executive team.”

Apple Inc. connects its partners and gains greater efficiency with IBM Social Business Software

CUPERTINO, California—August 24, 2014:IBM (NYSE: IBM) today announced that Apple Inc., biggest ever US company that hit its milestone—$623.52 billion on August 20, 2012, came onboard and integrated industry leading enterprise social networking platform IBM Connections. By using this social platform Apple will be able to leverage to the fullest its immensely creative employees and world class executive team.

“The amazing products that we’ve introduced such as iPhone 5, iOS 6, iPad mini, iPad, iMac, MacBook Pro, iPod touch, iPod nano and many of our applications, could only have been created at Apple and are the direct result of our relentless focus on tightly integrating world-class hardware, software and services” , says Tim Cook, CEO.

Apple employees will be able to collaborate , share, better perform their daily tasks, and leverage their expertise. As a result, not only it will make company more efficient but company’s customers will benefit as well. “At Apple, we strive to make world-class products that deliver the best experience possible to our customers.”

“Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices.”

Apple will be able to engage its business partners through IBM Connections social platform: business partnerships are crucial for the company’s success. “Apple makes extensive use of contact manufacturing services, with all of its production of notebook PCs outsourced to Quanta Computer Inc., Foxconn Electronics Inc. and occasionally Pegatron Corp., which are original design manufacturers (ODMs) and EMS providers based in Taiwan that have manufacturing operations in China.”

Improved collaboration in real time will help with product development and generate cost savings.

Service thinking analysis of Amadeus IT Holding SA

“We act as an international network providing comprehensive real-time search, pricing, booking, ticketing and other processing solutions to travel providers and travel agencies through our Distribution business area,….”

“Amadeus is a leading transaction processor for the global travel and tourism industry, providing transaction processing power and technology solutions to both travel providers (including full service carriers and low-cost airlines, hotels, rail operators, cruise and ferry operators, car rental companies, travel insurance companies and tour operators) and travel agencies (both online and offline). 

Co-creation

Components

Service System

“….we offer travel providers (today, principally airlines) an extensive portfolio of technology solutions which automate certain mission-critical business processes, such as reservations, inventory management and other operational processes.”

Service thinking analysis of Amadeus IT Holding SA

“Amadeus is a leading transaction processor for the global travel and tourism industry, providing advanced technology solutions to our travel provider and travel agency customers worldwide.   ”

“As a global company, employees need to work together not only locally but also with colleagues all over the world”

R-T-I

Multi-sided Metrics

Glo-Mo-So

“The Amadeus system processed more than 948 million billable travel transactions in 2011.  ”

IBM expands its European portfolio through acquisition of Amadeus IT Holding SA

Madrid, Spain—February 25, 2015:IBM (NYSE: IBM) today announced acquisition of Amadeus IT Holding SA, leading transaction processor for the global travel and tourism industry, providing advanced technology solutions to travel providers and travel agency customers worldwide..

This acquisition is aligned with IBM social business and its use to grow businesses worldwide, fast and efficiently.

“Our fast growing business requires new methods of working together. As a global company, employees need to work together not only locally but also with colleagues all over the world. At Amadeus we foster collaboration and knowledge sharing throughout the organisation via proactive knowledge management.”

With the help of IBM social enterprise online tools that improve training and help with organizational structure, Amadeus can achieve a high level of team collaboration.

“As an innovation driven IT company, knowledge and information sharing across areas and teams is vital for developing new ideas and improving processes. Through a variety of online tools and collaborative working and teaching programs our employees are able to work together and learn from each other, making the most of our talent.”

The Amadeus system processed more than 948 million billable travel transactions in 2011. Such large amount of business transactions requires robust knowledge management systems, through which organizations generate value from their intellectual assets. Doing so involves sharing them amongst employees, departments and clients, in order to identify and share best practices.

“Effective knowledge sharing provides tangible advantages: it enhances employee performance, fosters innovation, and facilitates the exchange of its most important asset - the “know-how” of each of its employees.”

As a member of IBM family, Amadeus will able to leverage IBM products and services to grow its business exponentially.

Service thinking analysis of SocialFlow

“SocialFlow technology help clients extract value from their social media content resulting in increased and sustained growth for companies.”

“SocialFlow provides a full‐featured intelligent solution for earned and paid publishing on major social networks.”

Co-creation

Components

Service System

“SocialFlow platform, Crescendo, is a full featured cross‐API integration allowing enterprise level customers to easily get amazing results from their publishing and promotion on Twitter and Facebook.”

Service thinking analysis of SocialFlow

“Amadeus is a leading transaction processor for the global travel and tourism industry, providing advanced technology solutions to our travel provider and travel agency customers worldwide.   ”

“Companies all over the world are using Facebook’s simplified ad units to gain new customers or grow more exposure for the brand. ”

R-T-I

Multi-sided Metrics

Glo-Mo-So

“…displays live data for instant analysis, tracking and management.. ”

IBM enters into partnership with SocialFlow, social media optimization platform.

New York, USA – January 1, 2014:IBM (NYSE: IBM) today announced partnership with SocialFlow, a social media optimization platform for leading brands and publishers.

Founded in 2009, SocialFlow is home to a world-class research team whose work has been featured in Reuters, New York Times the UK Guardian, Fast Company, Xinhua, the Huffington Post, MIT’s Technology Review, Nieman Journalism Lab, Business Insider, International Business Times, Salon and many others. Based in New York City, SocialFlow has helped numerous well-respected brands such as the Economist, Pepsi, Burberry, Forbes, Walmart, Buzzfeed, and Human Rights Watch.

As more companies use social media to augment brand visibility, it’s vital that employees engage with the targeted audience as well. Employees are the best company advocates, and companies can more effectively measure employee engagement in social media.

With IBM as a partner, SocialFlow will be able to utilize its innovative social media technology to help brands not only measure their employee engagement but also analyze customers interactions with brands.

 ”With unparalleled access to the Twitter and Facebook data streams, the company developed technology that is able to understand and quantify audience, attention, topics and engagement to provide an accurate value assessment of social media content for brands and businesses. “

“We help brands to make split-second decisions every day based on millions of interactions”, says Frank Speiser, co-founder of SocialFlow.

References

http://www.apple.com/pr/library/2012/10/29Apple-Announces-Changes-to-Increase-Collaboration-Across-Hardware-Software-Services.html

http://www.isuppli.com/Manufacturing-and-Pricing/News/Pages/Fast-Facts-on-Apples-PC-Outsourcing.aspx

http://www.apple.com/letter-from-tim-cook-on-maps/ http://www.apple.com/pr/library/2011/12/12Apples-Mac-App-Store-

Downloads-Top-100-Million.html http://www.investors.amadeus.com/english/inv_relations/ http://www.amadeus.com/amadeus/documents/corporate/

corporate_responsibility/cr_report_2010/en/Amadeus%20CR%20Report%202010%20-%20Chapter%208.pdf

http://www.socialflow.com/our-perspective http://www.crunchbase.com/company/socialflow