Presentation from Social Media Masters 2011 in New York City: Abstract: Kat Mandelstein will share insights on the IBM journey to becoming a Social Business and share practical strategies for how to empower your employees to live social, how to execute effective social media campaigns, and how to leverage social thought leadership to influence the influencers. B2B companies have unique opportunities when it comes to how social transforms their business. Starting from social media marketing to attract and retain customers and evolving into business process changes like crowdsourcing innovation with input from partners and early adopters of your products and services. Social is rapidly turning the traditional marketing and product development plans on their heads and creating two-way real-time dialogue for customer interaction. The guarded walls of the corporation are slowly turning into windows with a new level of transparency inside an effective Social Business. As the world’s leading global technology brand with over 400,000 employees around the world, IBM is a great case study in leveraging both public social networks as well as their own innovations from IBM Research and product development. Being so large and geographically dispersed, it is the ideal test market for this transformation into a Social Business. IBM takes social seriously and leverages it far beyond the average company: for developing products and services; enabling sellers to find and stay connected with clients; training the next generation of leaders. Social has also been at the core of how IBM shares its vision of the transformation to a Smarter Planet among clients, employees, partners, governments, NGOs, and other key influencer communities. This year social also played a key role in the IBM Centennial celebration, where Watson may have won Jeopardy, but is now on to more serious business.

1. Becoming a Social Business: IBM’s JourneyKat Mandelstein, kmandel@us.ibm.com, @katmandelstein#SMM2011NYC #IBMSocialBiz September 23, 2011 Social Media Masters NYC

2. A little bit about me http://about.me/katmandelstein © 2011 IBM Corporation

3. Social Internet PCs Departmental Mainframe Technology enabled Business Transformation The Fifth IT Era:The era of Social Business

7. Control brand

8. Embed social in process

10. Ideas from inside

11. Build communities

14. Value of Social Business for Sales and Marketing Management Realized benefit - median improvement % Increase effectiveness of awareness (realized by 52% of respondents) Increase revenue (realized by 18% of respondents) Increased effectiveness of conversion (realized by 52% of respondents) (*) “The rise of the networked enterprise. Web 2.0 finds its payday” – McKinsey Global Survey Results, 2010

16. Realized benefit - median improvement % Value of Social Business for Customer Service Increase customer satisfaction (realized by 77% of respondents) Reduce marketing costs (realized by 45% of respondents) Reduce support costs (realized by 35% of respondents) (*) “The rise of the networked enterprise. Web 2.0 finds its payday” – McKinsey Global Survey Results, 2010

17. OLD PROCESS: Product Development Process SOCIAL ENABLED PROCESS: IBM 4 million engagements 70% news ideas Crowdsourced products like Project Zero Brand awareness increase in application developers, IT specialists, etc. Site to solicit product ideas Social Enabled Product Development

18. Realized benefit - median improvement % Increase speed of access to external experts (realized by 40% of respondents) Reduce time to market for new products/services (realized by 29% of respondents) Increase number of successful innovations (realized by 28% of respondents) 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

19. IBM Expert Locator Allows IBMers, Our Customers & Business Partners to find the right expert on a topic quickly on w3.ibm.com and ibm.com Includes internal IBM Connections Profile and external social network profiles

20. Value of Social Business for HR and Talent Management Realized benefit - median improvement % Increase speed of access to internal knowledge (realized by 77% of respondents) Increase speed of access to internal experts (realized by 52% of respondents) Reduce internal communications expense (realized by 60%) (*) “The rise of the networked enterprise. Web 2.0 finds its payday” – McKinsey Global Survey Results, 2010

21. Social Computing Guidelines: Spring 2005 Revised 2010 Empower everyone to participate Employees = brand ambassadors Digital Council Build a culture for participation startinginside first Experiment. A lot. Gaming. Jams. IBM Case Study: Align Corporate Culture Step one in Social Business: Align Organizational Goals and Culture May2008 14

23. Communities & Activities

24. File Sharing

25. Unified Communication

26. Virtual Meetings

28. Social Business Training & Certification program for IBMers

30. Aggregator

31. Digital Library

32. Social Insights Blog Social Accounts

33. Jams

34. GreenhouseDownload the Social Business Jam Report http://www.ibm.com/software/info/social_business_jam Participate in the Social Standards Jam

35. Campaign: Social Business ≠ Social Media for Business

37. Aggregate Content into a Landing Page or Community

40. What is Watson? The Watson technologyset is a solution capableof interpreting large volumes of unstructured dataand natural language, providing precision and confidence in its answers A transformational set of technologies that fundamentally change the way businesses look at solving problems and bring intelligence to ways they can make better informed, optimized decisions The Watson visionhelps inspire organizations to achieve optimized outcomes through its ability to rapidly process information to find precise answersto critical questions The Watson Jeopardy! Grand Challenge has wide reaching implications for the way businesses make decisions. It’s no wonder that millions expressed interest! 34.5M Jeopardy! Viewers / 1.3B+ Impressions Over 10,000 Media Stories / 11,000 attend watch events 2.5M+ Videos Views (top 10 only) 10,897 Twitter / 23,647 Facebook Fans

41. Smarter Communications Smarter Healthcare Communications Service ProviderAnalyzing over 1B new call records daily along with50TB of historical data to predict & reduce customer churn increasing revenue Healthcare Program Provider Analyzing tens of thousands of patient records with analytical models provides reduces mortality by up to 50% in cardiac procedures Smarter Government Smarter Banking Large Financial Services Firm Analyzing client patterns captured in a 100TB database to develop new offerings, drive loyalty, & increase profitability Large Government AgencyAnalyzing 100TBs of active data & 20 petabyte archive; Millions of objects handled per second for more efficient and effective government IBM’s History of Grand Challenges is Leading to Grand Outcomes

43. 1.5M errors occur in the way medications are prescribed, delivered and taken in the U.S. each year

44. 20% of all errors are diagnostic errors

45. 8.4% 2010-2011 rate of employer-based healthcare cost increase

46. Watson can analyze millions of pages per minute to assist with diagnosis, leveraging the latest available research

47. Watson can uncover patterns and identify which patients are at risk of contracting specific diseases

48. Watson can help identify optimal treatment recommendations reducing waste and re-admissionsDr. Herb ChaseProfessor of Clinical Medicine, Columbia University

50. Content Analytics

51. Document Image and Capture

53. Information Governance

54. Big Data Analytics

55. Text Analytics

56. Master Data Management

57. Data Warehousing

58. Consumer Insight

59. Brand Sentiment

60. Team Analytics

63. Accordingly, IBM saw a dramatic shift in the tone of its online buzz, moving from a predominantly neutral topic of conversation to one in which one-in-four mentions positive.

64. IBM's worldwide presence dominated – with active social participation from IBMers across the globe.

65. For first time ever, IBM achieved the top of “Trending Topics” on Twitterin US and India.

66. “IBM” was mentioned 24,000 times globally in a single day (June 16).

68. social conversation was notably high, with the conversation classified as 4% "very positive", 15% "positive", and 0% negative.

69. Celebration of Service participants worldwide uploaded over 1500 photos on ibm100.com on that day “#IBM100 years. Congratulations to all who participated in service day. Blood donation, books, adoption of dogs and planting trees.”

71. Opens TODAY through October 23rd, hours on Web site

72. Tickets compliments of IBM, get from Jaffe Box Office

73. http://www.ibm.com/ibm100/thinkexhibit

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