Cbs social media & innovation in ibm anders quitzau copy

2. Social Media & Innovation IBM’s definition of innovation § Intersection of invention and insight § Creates value § Holistic view “Innovation is a societal -- not a – Business model technological -- phenomenon, Sam Palmisano, CEO, IBM Corporation – Products & services – Operations 2 © 2012 IBM Corporation

4. Enabling culture Social Media & Innovation change We Embrace Collaborative & Open Innovation Why? What we’ve done § Become our clients’ “innovation partner” § Established an innovation agenda – Address client priorities that spans multiple dimensions: – Build deeper client relationships – Product § Respond to changing nature of innovation – Services § Organizations need each other to be – Business process successful – Business model – Pace of innovation outstrips an – Management and culture organization’s ability to “go it alone” – Policy and society § Changing workforce dynamics – Globalization § Enabled global collaboration – “Millennials” – Culture of collaboration – Innovation ecosystem Venture Capitalists ISVs Business IT Analysts Partners “We opened up our labs, said to the world, ‘Here Investors Alumni are our crown jewels, have at them’. The Jam -- Regulatory Bodies Universities Innovation Ecosystem § Technical and programs like it – are greatly accelerating Clients § Business our ability to innovate in meaningful ways for Community business and society.” - Sam Palmisano, Employees Leaders Standards Competitors IBM CEO Policy- Bodies makers 4 © 2012 IBM Corporation

6. Social Media & Innovation Banks are receiving new innovative ideas from both internal and external sources Internal & External Sources for New Idea Generation Customers directly 38 % Employees (general population) 35 % Consultants 27 % Banking CEOs on Internal sales and service units 25 % Sources of New Ideas: Business partners 23 % § “…external, comes from client panels, customers and marketing Associations, trade groups, conf boards 19 % intelligence…” Competitors 17 % § “…all employees are urged to look Other 6% for innovation and good ideas…” § “…CEO pushes marketing to ‘steal Think-tanks 6% three good ideas’ from competitors Academia 6% and make them better…” Internal R and D 4% § “…main source of innovation is Internal Sources individual business itself…” Media, Publications 2% External Sources § “…vendors are great source of Internet 2% innovation; also use academia…” Citizens 2% Labs/Other Govt institutions 0% Source: The Global CEO Survey 2006 6 © 2012 IBM Corporation 14

7. Social Media & Innovation At IBM, ideas are generated from multiple sources within and outside … Ideation Sources Market Institute for Intelligence Business Value Business Unit Idea Strategies programs Global Technology Emerging Business Idea Outlook Opportunity Program First-of-a-Kind New Technologies Program Venture program On Demand University Transformation Strategy Programs Global Innovation Outlook 7 © 2012 IBM Corporation

8. Social Media & Innovation IBM has a workforce of over 500,000 of which almost 50% are mobile Major Employee Sites Customer Fulfilment Manufacturing Employee Service Centers IBM Research Centers IBM location Mobile employees • 170 countries • 2,000 locations • Nearly 100 acquisitions since 2003 • 50% employees have < 5 years experience LC 8 © 2012 IBM Corporation

10. Social Media & Innovation Generational shifts unleash different work styles Older workers Mid- career workers New generation (Age 50 +) (Age 35 – 50) (born after 1980) growing as % of workforce shrinking as % of workforce growing as % of workforce wisdom and intellectual essential professionals critical to long-term viability wisdom and intellectual and middle managers and innovation capital of the organization and middle managers email instant messaging social networking 10 © 2012 IBM Corporation

11. Social Media & Innovation What effect does Gen Y have in “real life”? - Work in teams - - non-hierarcical organisation - work flexible with Mobile and Cloud - Customization / Engagement / Entitlement - Corporations wants talents! - Where is knowledge management in 10 years? From APCO Worldwide 11 © 2012 IBM Corporation

12. Social Media & Innovation Technology is dramatically changing the way we live How I Buy How I Work Interacting with peers Collaborating from and engaging with the anywhere at any time. company. How I Create Tapping into a wide variety of insight and expertise. 12 © 2012 IBM Corporation

13. Social Media & Innovation « A Social Business is a business that embeds «social» in all of its processes, connecting people to people, people to information, and data to insight. It is a company that engages its employees and clients in a two-way dialogue with social tools, is transparent in sharing its expertise beyond its four walls, and is nimble in its use of insights to change on a dime. It is different from social media, in that social media primarily adress or focus on marketing and public relations.» - Sandy Carter, Get Bold 13 © 2012 IBM Corporation

14. Social Media & Innovation A social business optimizes interactions among people to gain a competitive advantage Workforce Customer Care and Product and Optimization Insight Service Innovation 14 © 2012 IBM Corporation

15. Social Media & Innovation Our philosophy of innovation is: Fail many, but fail cheap - A new paradigme in innovation enabled by Web 2.0: Yesterday – as was 1 Today – As is § Ideation and Product Inception from the Ideas source: expanding source for Ideas source: Internal innovation Internal, partners and customers idea idea idea idea idea § Use Collaborative idea ideaidea ideaidea idea idea tools to solicit idea idea idea idea interactive feedback. Weeks to months idea 18 months to 2 years § Limited community to foster new innovation Service Service Service § Little user interaction and market feedback § “Build it and Service § Service silos § Limited reuse they will 3 2 § Use of exposed come” § Larger variety of approach compelling offerings common capabilities to offer customers to enable rapid service assembly Breadth 15 © 2012 IBM Corporation

17. Social Media & Innovation Innovation as a core discipline at IBM Mobilize Interest, Incubate, Create Mobilize Interest, Implement, Collaborate Prototype and Idea Collaborate Take to Market Validate INSIDE IBM Lines of Business Internal Stakeholders Global Technology Outlook Clients FOAK OUTSIDE Sametime 3D Partners IBV reports 17 © 2012 IBM Corporation

18. Social Media & Innovation What are How do How IBM How customers Jams? Jams work? has used Jams are using Jams An introduction • A massive online discussion using the Internet. • A time-limited event that can elicit participation from thousands of individuals anywhere in the world. • Subject-matter experts and moderators guide participants to build on each other’s ideas. 18 © 2012 IBM Corporation

19. Social Media & Innovation Jams Global collaborative inside/outside-firewall innovation enterprise-wide discussion, collaboration and decision-making §Real-time threaded discussion §Open idea-rating §Equal access by all employees WorldJam 2001 ValuesJam ValuesJam 2003 WorldJam 2004 InnovationJam WorldJam 2004 InnovationJam TM 2006, 2008 Anew collaborative medium to new collaborative medium to Focused on pragmatic solutions For the first time, IBM’s clients, IBM’s clients, An in-depth exploration of IBM’s in-depth exploration of IBM’s aroundon pragmatic solutions focus growth, innovation and Business Partners, and our business partners and capture best practices on 10 Values and Beliefs by employees bringing the company’s solutions around growth, innovation and Family members joined in a family members joined in a urgent IBM issues To life bringing solutions to life new collaborative exercise new collaborative exercise 19 © 2012 IBM Corporation

20. Social Media & Innovation Examples “Ideas” Jam IBM WorldJam 2004: Develop pragmatic ideas § Actionable ideas about a particular topic / and solutions to drive company’s growth and challenge the business (enterprise) faces innovation strategy § Quantifiable inputs from jammers Global Customer Electronics Manufacturer: collaborating to bring the ideas to life Develop ideas to realise the company’s new strategy with it’s new values as the framework § Establishing company (enterprise)-specific Nato Security Jam 2010: AFGHANISTAN , CRISIS best practices and an action plan MANAGEMENT , CLIMATE CHANGE, DEVELOPMENT , HUMAN RIGHTS, COMPREHENSIVE APPROACH CAPABILITIES & TRAINING, RELATIONS WITH RUSSIA & CHINA, PIRACY Possible questions Example of topics/questions Getting closer to our customers: How can we get better at delivering what our customers expect — and more? Understanding ourselves: What do our strategies and values imply for each one of us? Driving growth: How can we see and seize new growth opportunities? Creating a better company: What will it take to make our company the envy of our industry? 20 © 2012 IBM Corporation

21. Social Media & Innovation Executive Report – 2008 Innovation 16 Jam Participation with Breadth and Depth – During the 90-hour period of the Jam, Jammers: • Represented people in 80 countries from over 1,000 companies across 20 industries • Generated nearly 90K logins • Created over 32,000 posts • Read roughly 1.5 million pages, averaging 76 pages per Jammer. 21 © 2012 IBM Corporation

24. Social Media & Innovation Innovation Hubs 24x7 innovation marketplace § Localized collaborative innovation model for directed results § Next iteration of ThinkPlace program § Integrates Lotus Connections social network with idea sharing § Sharing business needs, innovation, implementation and recognition § $778M estimated impact of idea programs: – 45% new revenue opportunities – 37% time savings improvements – 18% cost savings improvements – cultural suggestions 24 © 2012 IBM Corporation 4

25. Social Media & Innovation Innovation Hub: 24x7 Idea Marketplace § Open, collaborative system: ideas submitted, discussed, then refined by community § Every employee can see ideas from others, comment on ideas, rate them, or tag them § Facilitates social networking by using tags to enable discovery of similar ideas and people with similar interests § Personalized action lists with simple workflow for idea evaluation and collaboration § Executive Challenges request ideas to address specific issues § Subject focused sub hubs ensures commitment and energy § Linkage to prototyping/validation programs (BizTech & TAP) and other resources § Innovator’s Awards for implemented ideas http://ideas.tap.ibm.com/i_dir/ihubidea.nsf/ © 2012 IBM Corporation 25

27. Social Media & Innovation Innovation process: Technology Adoption Program distribution channel for innovations 2200+ innovators 120,000+ early adopters concepts & ideas Technology Adoption Program hundreds of Enable Measure Engage the offerings innovators value community IBM products offerings production enables the route to market 27 © 2012 IBM Corporation

29. Social Media & Innovation Hard to find the right person, the right information, the right tool FACES a faster, more intelligent people search About 14000 visits a month EXPERTISE LOCATOR Employees can share Areas of expertise 10,000 logins, over 100 experts contacted by end users ANSWERS Grassroots : people can ask questions, find and provide answers Approximately 8000 users per month 29 © 2012 IBM Corporation

31. IBM Connections is already at work in IBM Profiles IBM’s internal Profiles hold over 635,000 entries* & serves over 4 million searches per month. It’s the hub of user requests & all applications authentication for IBM. Communities IBM hosts over 85,177 online communities, each with shared resources and discussions. More than 38,422 are private [restricted] communities. Blogs IBM’s blogging platforms host 42,929 blogs, 303,296 entries with 106,736 users and 84,439 tags. Bookmarks IBM’s internal social bookmarking system has 1,370,336 total bookmarks with 3,908,271 tags and with 76% of them publicly shared. Activities IBM’s internal Activities service contains 259,013 unique activities with 4,169,728 entries and with 556,429 registered, 'distinct', members. Files IBM’s internal social file sharing & storage service contains 581,081 files, shared 1,501,706 times with 338,903 files added to folders [collections]. Wikis IBM’s internal Connections Wiki platform hosts 672,968 pages viewed 42,993,500 times. (* employees & contractors) Data updated: March 1st, 2012 © 2011 IBM Corporation

34. Social Media & Innovation Social Media Outside the IBM Firewall examples ( incl Alumni) 80+ accounts using “IBM” in the name (25% from outside the US) – over 3,000 IBMers on Twitter 200+ IBM channels 39,000+ users, 500+ IBM groups (65% outside the US) 378,000+ (*including Alumni) 166 communities, 200+ blogs, 5000+ profiles 75,000+ 100,000 IBMers collaborating with 200,000 non-IBMers 34 © 2012 IBM Corporation

37. Social Media & Innovation AlphaWorks - part of IBM developerWorks - Speeding IBM Emerging Technologies to the outside early-adopter community § Promising software programs in research not yet commercialized. § Outside companies and developers contribute valuable ideas about bringing them to market. § First-cut versions of research technology available for free trial attracting thousands of early adopters, innovators, and entrepreneurs to site. § 40% of technologies on the site graduate into IBM products or industry standards. 37 © 2012 IBM Corporation

38. Social Media & Innovation alphaworks is collaborative! Internal to IBM External to IBM Open source licence Open Not all nodes are IBM Research Sources represented, e.g. Lab Tours User Developers are not in feedback the diagram Technology Legal&Naming Prototype IBM Open/source Software alphaworks End-user AWS infos evaluation Technology Prototype AWS Software IBM Dev Labs End-user Market/ Alphaworks Alphaworks Software Community Internal alphaBrief feedback? to IBM DevelopersWorks support IBM Promotion External IBM Software Product to IBM Brand developerWorks SWG Information Academic Initiative GR Efforts PR Efforts Coordination Conferences Tangible transfer Intangible transfer 38 © 2012 IBM Corporation

39. Social Media & Innovation Links: IBM Social Business: http://www-01.ibm.com/software/collaboration/ social/business/ IBM Research Center for Social Business: http:// www.research.ibm.com/social/index.shtml IBM Lotus Greenhouse: https://greenhouse.lotus.com IBM Jams: https://www.collaborationjam.com/ Alphaworks: http://www.alphaworks.ibm.com/ 39 © 2012 IBM Corporation

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