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Enterprise Social
     Media
   An IBM Case-Study


     David Zaki
Agenda
1.  Pre-cautions
2.  IBM’s Social Media Strategy
3.  Insights into IBM’s Social Media
4.  The Payoff and Smarter Planet
5.  On the ROI of social media
Pre-cautions
1.  This case-study is a success story.
2.  I don’t know how many times they faced
    problems before reaching this state.
3.  Sorry, but don’t expect an exciting story
    behind how IBM became that successful
                 BUT…
 There must be a reason for choosing this
case-study other than the final exam J
IBM’s Social Media
            Strategy

“We don’t have a corporate blog
or Twitter ID because we want the
‘IBMers’ to be the corporate blog
and Twitter ID” ~ Adam Christensen,
Social Media Communications Manager
at IBM corporation
IBM’s Social Media
           Strategy

Strategy: Decentralized social
media approach.
Rules: “Employees are responsible
for what they create and prohibit
release of proprietary information”
Social Media Status
•  No Corporate blog or twitter ID
•  17,000 internal blogs
•  100,000 employees using internal blogs
•  53,000 members on SocialBlue (like
   Facebook for employees)
•  A few thousand “IBMers” on Twitter
Social Media Status
•  Thousands of external bloggers,
•  Almost 200,000 on LinkedIn
•  As many as 500,000 participants in
   company crowd-sourcing “jams”
•  50,000 in alum networks on Facebook
   and LinkedIn
People at IBM understood what social
media is all about…




    “Power to the PEOPLE”


           But the story did not end…
Smarter Planet
•  In 2003 IBM conducted it’s first “jam”
•  JAM: gathering IBM’s employees, families
   and friends for 3 straight days in an
   online forum to discuss IBM’s next
   investment
•  From 50 research projects, people had
   to vote for 10.
•  Then they voted for “Smarter Planet”
Smarter Planet
•  IBM invested $ 100 million in the
   “Smarter Planet” project.
•  All from the votes of “PEOPLE”
•  Smarter Planet: is a research project
   that looks in problems like smarter
   public transportation, smarter health
   care systems, how to solve the rush hour
   problem.
The Payoff
•  $ 12.3 Billion in earnings
•  $ 100 Billion in revenue
•  44.1 % gross profit margin
ROI of Social Media
•  Until now there is no direct ROI for Social
   Media.
•  It’s a change in the world we are living in.
•  You either accept the change or lose the
   game.

•  No hard figures but necessary for surviving
   and thriving in a new reality.
•  IBM changed it’s core values and
   investments based on the new social world.
Take Away..
•  Understand the change.
•  Accept the change.
•  Act accordingly.
•  Social Media is about PEOPLE.
•  Don’t put rules if you want to play Social
   Media.
•  No direct ROI but necessary for
   surviving.
Questions…




   Thank you…

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Enterprise Social Media

  • 1. Enterprise Social Media An IBM Case-Study David Zaki
  • 2. Agenda 1.  Pre-cautions 2.  IBM’s Social Media Strategy 3.  Insights into IBM’s Social Media 4.  The Payoff and Smarter Planet 5.  On the ROI of social media
  • 3. Pre-cautions 1.  This case-study is a success story. 2.  I don’t know how many times they faced problems before reaching this state. 3.  Sorry, but don’t expect an exciting story behind how IBM became that successful BUT… There must be a reason for choosing this case-study other than the final exam J
  • 4. IBM’s Social Media Strategy “We don’t have a corporate blog or Twitter ID because we want the ‘IBMers’ to be the corporate blog and Twitter ID” ~ Adam Christensen, Social Media Communications Manager at IBM corporation
  • 5. IBM’s Social Media Strategy Strategy: Decentralized social media approach. Rules: “Employees are responsible for what they create and prohibit release of proprietary information”
  • 6. Social Media Status •  No Corporate blog or twitter ID •  17,000 internal blogs •  100,000 employees using internal blogs •  53,000 members on SocialBlue (like Facebook for employees) •  A few thousand “IBMers” on Twitter
  • 7. Social Media Status •  Thousands of external bloggers, •  Almost 200,000 on LinkedIn •  As many as 500,000 participants in company crowd-sourcing “jams” •  50,000 in alum networks on Facebook and LinkedIn
  • 8. People at IBM understood what social media is all about… “Power to the PEOPLE” But the story did not end…
  • 9. Smarter Planet •  In 2003 IBM conducted it’s first “jam” •  JAM: gathering IBM’s employees, families and friends for 3 straight days in an online forum to discuss IBM’s next investment •  From 50 research projects, people had to vote for 10. •  Then they voted for “Smarter Planet”
  • 10. Smarter Planet •  IBM invested $ 100 million in the “Smarter Planet” project. •  All from the votes of “PEOPLE” •  Smarter Planet: is a research project that looks in problems like smarter public transportation, smarter health care systems, how to solve the rush hour problem.
  • 11. The Payoff •  $ 12.3 Billion in earnings •  $ 100 Billion in revenue •  44.1 % gross profit margin
  • 12. ROI of Social Media •  Until now there is no direct ROI for Social Media. •  It’s a change in the world we are living in. •  You either accept the change or lose the game. •  No hard figures but necessary for surviving and thriving in a new reality. •  IBM changed it’s core values and investments based on the new social world.
  • 13. Take Away.. •  Understand the change. •  Accept the change. •  Act accordingly. •  Social Media is about PEOPLE. •  Don’t put rules if you want to play Social Media. •  No direct ROI but necessary for surviving.
  • 14. Questions… Thank you…