IBM Opens Lab To Bring R&D To The CEO

One of the things we heard about extensively during our time on the ground at SXSW Interactive 2013 in Austin over the past week was the importance of the customer experience.

Whether that be in applications in mobile devices, in customer service via the social media, the physical experience of a brand’s product or service…the customer experience rules!

And this anecdotal data is supported by IBM’s own research, including last year’s Global CEO Study, which queried 1,700 CEOs from 64 countries and 18 industries and found that CEOs are changing the nature of work by adding a powerful dose of openness, transparency, and employee empowerment to the command-and-control ethos that has characterized the modern corporation for more than a century.

The study revealed that the advantages of this fast-moving trend are clear: Companies that outperform their peers are 30 percent more likely to identify openness — often characterized by a greater use of social media as a key enabler of collaboration and innovation — as a key influence on their organization.

Those “outperformers” are also embracing new models of working that tap into the collective intelligence of an organization and its networks to devise new ideas and solutions for increased profitability and growth.

In order to forge those closer connections with customers, partners, and a new generation of employees in the future, CEOs plan to shift their focus from using e-mail and the phone as primary communication vehicles to using social networks as a new path for direct engagement. And while social media is the least utilized of all customer interaction methods today, it stands to become the number two organizational engagement method within the next five years, a close second to face-to-face interactions.

Big Data, Big Opportunity

Given the data explosion being witnessed by many organizations, CEOs also recognized the need for more sophisticated business analytics to mine the data being tracked online, on mobile phones and social media sites. The traditional approach to understanding customers better has been to consolidate and analyze transactions and activities from across the entire organization. However, to remain relevant, CEOs must piece together a more holistic view of the customer based on how he or she engages the rest of the world, not just their organization.

The ability to drive value from data is strongly correlated with performance. Outperforming organizations are twice as good as underperformers at accessing and drawing insights from data. Outperformers are also 84 percent better at translating those insights into real action.

From Theory to Action

To this end, IBM today announced the creation of the IBM Customer Experience Lab, dedicated to helping business leaders transform the way customers experience their products, services and brands through the use of mobile, social, cloud and advanced analytics technologies.

IBM Research scientists and business consultants will co-create with clients to deliver systems that learn and personalize the experiences of each individual customer, identify patterns, preferences and create context from Big Data, and drive scale economics.

The IBM Customer Experience Lab will provide CEOs, CMOs, CFOs, heads of sales and other C-suite executives direct access to a virtual team of 100 researchers, supported by the deep industry and domain expertise of thousands of IBM business consultants addressing the opportunities of the digital front office.

In the new age of Big Data and analytics, organizations are reassessing how to move from addressing mass audiences to personalized relationships. The same technologies allow enterprises to engage in new ways with their employees, allow government agencies to build new relationships with citizens, or enable new models of interaction among students and educational institutions.

IBM Research is developing technology assets and capabilities that can help deliver front office capabilities as a service from a cloud, design novel products to match customer preferences, and leverage math and psychological theories of personality to improve marketing effectiveness.
Client Engagements

The Lab focuses on innovation breakthroughs in three primary areas:

• Customer insight. Applying advanced capabilities such as machine learning and visual analytics to predict differences in individual customer behavior across multiple channels.
• Customer engagement. Using deep customer engagement to drive insight and continuously deliver value by personalizing engagement, versus transactional experiences.
• Employee engagement. Embedding semantic, collaborative, and multimedia technologies to foster employee engagement and insight – in person and online.

Among the clients engaged with IBM on advancing their innovation process are Nationwide Building Society, the world’s largest building society serving 15 million members in the United Kingdom, and Banorte, one of the largest banks in Mexico with more than 20 million customers.

“Mobile and social technologies, and the ability to access information anytime, anywhere, is driving significant change in the way consumers bank and in the services they expect,” said Martin Boyle, Divisional Director of Transformation, Nationwide Building Society. “Our ability to innovate and anticipate, and not just respond, is what sets us apart from the competition and helps us to provide our customers with new and better ways to do business with us. By partnering with IBM, we can tap into its vast research and innovation expertise and facilities, which has already proved invaluable in our transformation program and will continue to be an important part in how we continue to innovate our service for customers.”

New Tools and Capabilities

The Lab provides IBM clients with an innovation process, assets and platform to give line of business leaders the exclusive ability to work side-by-side with IBM researchers and business consultants to analyze business challenges and jointly create solutions that integrate next-generation mobile, social, analytics and cloud technologies.

Co-creation with clients includes an innovation model called Innovation Discovery Workshops, which generate ideas, roadmaps, prototypes and solutions that draw on research assets, business consulting and IBM Software solutions in areas such as Smarter Commerce, Big Data, analytics, and Mobile First products.

The IBM Customer Experience Lab will be headquartered at the Thomas J. Watson Research Center in Yorktown Heights, N.Y., supported by researchers at IBM’s 12 global labs including Africa, Brazil, California, China, India, Israel, Japan, Switzerland, and Texas.

The Lab brings together skills across disciplines including service science, industries research, mathematics and business optimization, social, mobile, Smarter Commerce, data mining, cloud computing, security and privacy, cognitive computing and systems management. IBM invests more than $6 billion annually on research and development and employs about 3,000 researchers worldwide. IBM Global Business Services deploys business consulting, applications and delivery expertise globally, including market-leading business analytics, Smarter Commerce, mobility and applications management practices.

Visit here for more information about the IBM Customer Experience Lab, and follow IBM’s innovation breakthroughs on Twitter at @IBMResearch.

From Liking To Leading: Driving A “Purposeful” Social Business Strategy

At IBM Connect 2013 in Orlando, Florida, IBM announced earlier today new software and cloud-based services to help business leaders, such as chief marketing officers and chief human resource officers, advance their organization’s transformation with the adoption of social business technology.

The new offerings will help business leaders integrate IBM’s industry-leading social networking and analytics technologies into their business processes to empower the 21st Century workforce and transform client experiences.

Leading From The Front (Office)

Just as social networking has flourished in the consumer realm, Forrester has identified social business as an emerging business category, with the social technology industry growing to $6.4 billion by 2016.

Increasingly, front-office leaders, such as chief human resource officers, are looking to form a smarter workforce to unlock human potential and unleash innovation. According to a recent IBM CEO study, 70 percent of companies surveyed cited human capital as the single biggest contributor to sustained economic value.

The new social software offerings will help companies gain deeper insights into big data generated through the use of social networks. Organizations applying analytics to their data for competitive advantage are more likely to substantially outperform their industry peers.

Today, leading organizations, including 61 percent of the Fortune 100, are licensed to use IBM’s social business technologies to transform their front office business operations. This includes connecting employees globally to empower faster decision making and analyzing big data from sources such as Twitter, Facebook, blogs and public forums, to react swiftly to customer trends and outpace competitors.

Using Analytics To Better Understand Social Behavior And Business Opportunity

At the same time, social media and predictive analytics have emerged as indispensable tools for CMOs, who are using technology to make the customer experience more intelligent, intuitive and individualized.

According to the IBM CMO study, 82 percent of CMOs say they plan to increase their use of social media over the next three-to-five years to communicate with their clients.

IBM’s new software and cloud-based services include:

• A new Web-based social networking environment that provides HR leaders with a better way to recruit and onboard new employees, while giving employees access to digital media and data in real-time, enabling faster decision making.
• Software to help marketing teams design sophisticated advertising campaigns and quickly publish those campaigns to leading social networks, resulting in a consistent customer experience through every online channel.
• The next release of IBM’s industry-leading social networking platform will further enable users to access and analyze big data from inside and outside the organization, including Facebook, Twitter, audio and video.
• Already in beta, IBM is also announcing its plans to release the industry’s first truly social email client incorporating file sharing, activity streams and a simplified user interface. This will be the first major release of Notes and Domino in five years.

“IBM is revolutionizing front-office processes with the application of cognitive computing and advanced analytics,” said Alistair Rennie, general manager, social business, IBM. “Social business has transitioned from being an emerging idea to a fundamental platform that clients everywhere are using to change the way they empower their employees and engage their customers.”

Enabling the 21st Century Workforce

Following its $1.3B acquisition of Kenexa in December 2012, IBM today announced a new Web-based social networking environment that is expected to integrate IBM’s industry-leading enterprise social networking platform with Kenexa’s recruiting, on-boarding, learning and performance management solutions.

The IBM Employee Experience Suite will help HR leaders attract, empower and motivate talent to address skill and resource gaps while enabling their workforce to deliver better results for their clients.

For example, employees can use social networking, e-meeting and instant messaging capabilities to access applications and interactive rich media such as videos, resulting in improved collaboration and greater teaming across globally distributed teams.

The Suite intends to integrate with Kenexa’s Applicant Tracking System allowing HR leaders to more swiftly educate existing employees and identify prospective talent. HR leaders will be able to set up a recruiting site, use it to onboard employees, present training options, administer surveys to employees and manage performance. Prospective employees can view the HR data on the broadest range of mobile devices, helping HR departments reach an increasingly social-savvy and mobile workforce.

Transforming The Client Experience

The rise of the social-savvy, empowered consumer has prompted organizations around the globe to use social business and analytics capabilities to improve the customer experience. IBM today announced new capabilities that allow marketing teams to easily design, test and optimize sophisticated advertising campaigns.

For example, a new Social Media Publisher capability in IBM’s web experience software allows CMOs to push content, such as ad campaigns or promotions, to leading social networks with one simple click and without involving already resource strapped specialized IT teams.

Social Software for the Enterprise

With today’s news, IBM is introducing the next version of its social networking platform, IBM Connections. The new software will further enable users to access and analyze big data from inside and outside the organization, including Facebook, Twitter, audio and video.

Available in March 2013, IBM Connections 4.5 will include embedded document management capabilities so that members of a network can access, analyze and act on wide ranges of data types in the context of their work to improve decision-making and business results. IBM Connections’ Content Manager feature will allow teams and communities to harness an organization’s collective intelligence to solve business problems, increase productivity, and drive profit.

IBM Connections clients have access to new social features in the cloud, including blogging and ideation in Communities and access to information. In addition, IBM Connections will include enhanced integration of social capabilities in the Microsoft Outlook client, allowing users to access their social data such as profiles, files, and communities directly in Microsoft Outlook.

In December, IBM expanded its social business platform to include social document editing on-premises and in the cloud. The recently released IBM Docs, available on-premises and as part of the IBM SmartCloud for Social Business, allows browser users to simultaneously collaborate on word processing, spreadsheet and presentation documents to improve productivity.

IBM also announced that it expects to ship IBM Notes and Domino Social Edition 9 in March 2013. IBM Notes and Domino 9 will be the industry’s first truly social email client and delivers a social experience to users, whether using a browser or on the broadest range of mobile devices.

IBM Notes and Domino are used by more than half of the Fortune 500. IBM mobile capabilities manage and support a variety of platforms, including Apple (iOS 6), Android, Microsoft Windows operating system, including Windows and Blackberry smartphones (including BlackBerry 10).

Go here for more information about IBM’s social business initiative and creating a smarter workforce.

You can also follow #IBMSocialBiz and #IBMConnect on Twitter.

Alister Rennie, General Manager, Social Business @ IBM, addresses how organizations everywhere can move “from liking to leading” and build “purposeful” social business strategies.

(Not) Home For The Holidays

I’m pretty happy I don’t have to travel today.  I’m going to wait until tomorrow, when all the turkeys have gotten off the road.

Of course, watch out for Wal-Mart and other big retail parking lots.  The consternation about having to work on Thanksgiving is pervasive, and I wouldn’t want to see any customers attempt to play Frogger in those big parking lots.  It’s dangerous enough just trying to get through the doors and into the store!

As always, my wise counsel is to shop from the comfort of your couch.

Walt Mossberg, the ever-dependable tech journalist with The Wall Street Journal, has written an article about “Making Sense of All the New Laptop Flavors.”

He goes on about the various flavors of Windows 8 PCs and tablets, before concluding that the “least costly Mac laptop” is the 11-inch MacBook Air, for $999.

I bought one just about a year ago, and I maintain it’s still the best, fastest, lightest, most dependable computer I’ve ever owned, and I’ve owned plenty.

If I had to do it all over again, I would have splurged for more SSD, but that’s it.

If you want to make sure your personal shopping engine is fully revved before Black Friday, Gizmodo’s providing its Ultimate Black Friday guide for geeks, grouping deals by category, and offering a list of when every retailer is slated to be open on Black Friday, just in case you prefer shopping in a mosh pit.

As for an update on my new Apple Mini-me “mini,” otherwise known as the 5th generation iPod touch, I can only say I have no buyer’s remorse, even now after having seen the iPad mini in the flesh.

The retina screen and the small form factor on the newest touch are working perfectly for me thus far. I bought a new “Need for Speed” racing game just to be able to check out the graphics in full force, and the retina screen is simply stunning (as are movies and Netflix streams). I’ve always read what a great gaming platform the touch is, but playing that racing game has cemented it.

Over the next several days, if you want to keep pace with IBM’s annual holiday campaign “Digital Analytics” benchmark, just follow IBM’s e-shopping analytics guru, @jay_henderson (a fellow Texan!).

Jay and his team will be working and posting reports throughout the weekend and into next week to keep us all informed how the holiday e-retail season is going. Jay’s already indicated we can expect to see growing numbers on the mobile and tablet shopping footprint this year.  You can read Jay’s holiday set up piece here.

That said, don’t ignore those retail emails piling up in your in-box — email continues to be the e-retail Trojan Horse, with lots of Black Friday and Cyber Monday deals already being distributed. From Amazon to Golfsmith, I’ve received a number of holiday email deals, and it’s all I can do to keep my credit card filed away in my anti-scanning wallet!

If you’re looking for gainful employment this pre-Thanksgiving Wednesday, you might want to try somewhere other than LinkedIn. LinkedIn’s Website had a “service unavailable” message this morning, and TechCrunch has been reporting a LinkedIn site outage.

As for me, I’ll be (mostly) disappearing from the cyber maze over the course of the next week. It’s my parent’s 50th wedding anniversary, and I’m taking them on a cruise in the Caribbean to celebrate. I may send a post or two via email if I’m so inspired, but mostly I’ll be spending some quality time with my parents and some extended family, and gazing out at the Gulf of Mexico in a pina colada-induced haze (virgin pina coladas, of course).

For all of my readers here in the United States, I wish you a very happy and restful holiday weekend. For those of you outside the U.S., enjoy the email and conference call silence from your U.S. colleagues…it won’t last long!

Business On The Go: New IBM Mobile Computing Capabilities

I’ve written numerous times over the past oh, I don’t know, few years about the ongoing mobile evolution (revolution?).

(On that front, which, I wanted to circle back and say how happy I have been with my purchase of the new iPad Touch (gen 5), which I bought instead of the new iPad mini. But I think I’ll have to write a whole separate post on that!)

The ubiquity of mobile devices is empowering consumers, businesses and their partners to more seamlessly communicate and build high-quality, meaningful relationships and transactions. IBM recently introduce a spate of capabilities intended to help organizations bolster their mobile enterprise strategies, which you can read in more detail about in the post below.

And it’s important to note, IBM has also been following this story closely, and responding accordingly.

And on Friday, the company unveiled a suite of new software and services that enables global organizations to build a comprehensive mobile computing strategy –- from securing and managing devices, to creating mobile applications and analyzing data.

These new offerings are part of a move by IBM to capitalize on the growing market opportunity for mobile that is expected to drive $130B in revenue for the IT industry by 2015, according to a recent study.

Mobile Becoming Integral To Business

As organizations increasingly view mobile computing as the next platform to conduct business, the market is evolving beyond just the device.

Business leaders including the chief information officers (CIOs) and increasingly chief marketing officers (CMOs) of global organizations such as airlines, retailers, governments and healthcare providers are among the businesses turning to IBM to ensure mobile services and solutions are readily available to constituents and in full compliance with IT strategies.

But, they need solutions that can be applied across any mobile environment and device — whether a laptop, smartphone or tablet — and can provide an underlying IT infrastructure that is always available, secure, effectively manages data, and integrates both front and back-end systems.

According to latest reports, more than 10 billion mobile devices are expected to be in the hands of consumers, doctors, sales leaders and the like by 2020.

Already, 90 percent of mobile users keep their device within arm’s reach at all times (guilty as charged!), and complete many kinds of transactions across these smart devices

New Mobile Software and Services Fuel Growth 

While the opportunities presented by mobile are significant, there are a number of challenges facing clients when adopting mobile computing.

This includes the management and security of devices and their underlying infrastructures, ensuring a quality mobile application experience for users across operating systems, new devices entering the market almost monthly, integrating data with the cloud, and analyzing insights captured in real-time.

IBM offers clients a variety of offerings to quickly adopt mobile technologies throughout the organization, from consulting services to software solutions and industry expertise, organic R&D to key acquisitions.

As global organizations struggle to keep pace with the opportunities that mobile computing can provide, IBM’s new suite of capabilities will enable them to overcome these obstacles.

Mobile technologies have significant potential to fundamentally change how businesses operate, and should be part of any multi-channel marketing transformation that helps CMOs make more informed business decisions based on this important shift in consumer behavior.

They include the following:

• Mobile Planning and Strategy Services: Working with IBM consultants, clients can identify gaps and properly plan for the right mobile strategy.
• Mobile Analytics: Through analytics capabilities, chief marketing officers (CMOs), e-commerce and app developers can gain real-time access and deep intelligence into customers’ online and app experience across mobile devices.
• Endpoint Security and Management: With new software and managed mobility services, clients can embrace the Bring Your Own Device (BYOD) trend by simplifying the processes to secure devices and empower employees to manage their own devices. These capabilities extend to the management and support of Apple (including iOS 6), Android, Microsoft Windows operating system (including Windows 8) and Blackberry devices.
• Mobile App Development: Using the IBM Mobile Foundation will help clients better support native app development and make it easier to build apps that function in the absence of a network connection. New Lifecycle Management software will help clients quickly develop high quality apps across multiple platforms. New managed service capabilities will also provide organizations with support for deploying, implementing and managing their mobile apps and app stores.
• Social Collaboration for Mobile: With new social business enhancements, an organization’s mobile workforce can use their mobile devices to blog, get live updates from their social networks, access and edit files. New remote data wipe capabilities also help protect company data in case a device is lost or stolen.

IBM has been steadily investing in the mobile space for more than a decade, both organically and through acquisitions, offering a complete portfolio of software and services that delivers enterprise-ready mobility for clients — from IT systems all the way through to mobile devices. This builds on IBM’s deep understanding of its clients and their evolving IT needs.

You can go here to learn more about IBM Mobile Enterprise capabilities.

Live @ IBM Smarter Commerce Global Summit — Opening Keynote Debrief: Motivate the Elephant

Click to enlarge. The IBM Smarter Commerce Global Summit kicked off earlier today in Orlando, Florida. Over 200 IBM executives, industry specialists, and other thought leaders will be sharing their insights and expertise there over the next three days, including factoids like those seen in the infographic above.

If you love nothing else about IBM’s Smarter Commerce initiative, you have to love the fact that it’s driven by results.

Here in Orlando, day one of the IBM Smarter Commerce Global Summit has already revealed some of those facts, or business outcomes, that demonstrate the power of a more integrated customer experience in action.

By way of example: I mentioned earlier via Twitter that over $27 billion in sales generated by the Internet Retailers Top 500 is powered by IBM Commerce software.

Another example: IBM manages $57 billion in annual procurement spend managed on behalf of our clients.

Yet another: IBM analyzes over $100 billion of commerce transactions each year in the cloud and conveys that insight back to our customers.

But those are results on the so-called “back-end.”

Let’s turn our attention for a moment to the newly empowered consumer: 86 percent of them use multiple channels in their shopping efforts, and they spend four to five times more than the average.

Four in ten smartphone users search for an item while in the store, and yet online sales via mobile devices were up 300 percent over 2010.

Or how about this one: 77 percent of the global population are now mobile subscribers.

That’s an immense opportunity.

Guy Kawasaki On Enchanted Customers

As former Apple evangelist and social media thought leader and author Guy Kawasaki kicked off today’s keynote session here at the IBM Smarter Commerce Global Summit, he explained to the audience that we had over 200 interesting and very valuable sessions of the audience’s peers and outside industry experts sharing their own insights.

He began with the notion of the “chief executive customer,” that is to say, with placing customers at the center of the commerce experience.

Citing his own book, “Enchantment,” Kawasaki revealed there are three pillars for building enchantment with your customers. One, you have to be likable. Two, you must achieve trustworthiness. And three, you have to do something “DICEE” (the acronym which translated to “Deep,” “Intelligent,” “Complete,” “Empowering,” and “Elegant.”)

Kawasaki shared some compelling examples of which he spoke. After running into Virgin mega CEO Richard Branson at a speaking engagement in Moscow, Branson cornered Kawasaki and asked him the ill-fated question: Do you fly on Virgin Airlines?

Kawasaki admitted that, as a loyal United customer, he did not. Branson then used his charm and personality, and even a quick shoe shine, to convince Kawasaki he should reconsider.

Kawasaki now also flies on Virgin.

The Legend Continues…

After some other amusing anecdotes, Kawasaki turned the rostrum over to Craig Hayman, IBM’s general manager, Industry Solutions.

Hayman talked about examples of businesses that have had to completely reinvent themselves (Play-Doh, the children’s product, used to be a cleaning goop used prior to World War II!).

Hayman explained that the rate and pace of change in today’s marketplace is soaring, but that ultimately the customer “owns the transaction.”

“If you disappoint them,” Hayman explained, “they’re going to share their point of view (especially via the social media!) and then move on.”

Hayman handed the reins over to Lenovo senior VP of supply chain, Jerry Smith, who explained that Lenovo is a $30 billion global personal technology company with 27,000+ employees and customers in 160+ countries.

Partnering with IBM, Smith explained, Lenovo rebuilt its company around a global supply chain vision whose goal was simple yet straightforward: To become the undisputed #1 supply chain in personal technology by providing a best-in-class customer experience.

As Smith related to the gathered audience, “We need you (Lenovo’s sales force and partners) to sell product on the water,” meaning those units which were already on ships leaving China heading for parts around the globe.

Lenovo’s supply chain overhaul saw delivery performance go up by 15 percent, and onboarding costs/time down some 85 percent, giving them better negotiating leverage, higher order speeds, and leaner inventory, a must for the PC business.

The Grass Always Grows At Husqvarna

Smith’s handoff was to two executives from Husqvarna, the 300+ year-old company that, these days, specializes in outdoor equipment.

Think chain saws and lawn mowers.

“Grass always grows,” explained John Marchionda, Husqvarna’s VP of marketing, as his counterpart from IT, Simon Howard, nodded his head in agreement.

Husqvarna’s most recent marketing investments include a social video education space on its website that are both sales force and tutorial, explaining the likes of using chain saws safely, and effectively, and helping turn the inventory in the process.

The last IBM customer to “testify” in the morning session was Aditya Bhasin, the senior VP for Consumer Marketing and Digital Banking.

“People trust other people, not institutions,” explained Bhasin. He and his team are using that knowledge to make banking better, combining the best of human interaction with a more robust and effective technology system.

One example: “BankAmeriDeals,” a form of digital couponing that combines buyer behaviors, shopping, and payment systems to bring more value to its customers in direct savings on purchases.

Another: Its new Facebook branch, which is helping match consumers with local ATMs and bank branches, and helping answer customer questions through a medium they’re most comfortable with.

Change Is A Four Letter Word

The co-author of Switch: How to Change Things When Change Is Hard, Dan Heath, batted clean-up in the morning session by talking about a theme universal to many of IBM Smarter Commerce clients’ initiatives: Change.

“Change is a four-letter word for a lot of people,” Heath explained, before challenging the audience to think about “what happens when you leave Orlando?  Will the change you envision be a change you are willing to fight for?”

Heath explained that change is definitely within the art of the possible: We’re certainly optimistic about change the moment we decide to get married.

With much laughs from the audience, and Heath’s wedding album pictures onscreen as pudding proof, Heath explained that change is made more difficult by the battling two sides of our brains: The Rational, Conscious, and Deliberative side, and the Emotional, Unconscious, and Automatic side.

The emotional side is like a big elephant in our heads, the little devil telling us “We deserve ice cream” or “Call my ex.”

The rational side…well, we like to often ignore that side.

To make his thesis actionable, Heath explained a three-part framework for thinking about change.

One, he explained, we have to “direct the rider.” Point to the way you want to change and “find the bright spots,” those areas of opportunity where you’ve already succeeded.

Second, “motivate the elephant” — give them a compelling reason to change.

And finally, “shape the path,” for change.

That is, “cultivate a culture that’s more conducive to change” and encourages more people to participate.

Singapore Sling

Resorts World Sentosa in Singapore will play host to a new, first-of-its-kind IT event in Singapore this October 9-11, where smart businesses from around the globe that have been busy implementing new business and IT strategies will come together to network with IBM clients, industry experts, and IBM thought leaders and learn how they’re converting opportunity into outcomes.

It was a big day today in Singapore, where the country celebrated its independence, and where government leaders encouraged Singaporeans to make even more Singaporeans, in order to counter the country’s declining birthrate, which is among the lowest in the world at 7.72 births per 1,000 people.

I’m sure a few Singapore Slings may have been consumed, and I would have been right there with them, as the Raffles Hotel is definitely on my list of places to frequent for when I visit.

And that will be sooner rather than later, as IBM is going to be hosting a new, first-of-its-kind event at the Resorts World Sentosa this October 9th-11th.

This new IBM event will share with attendees the breadth of IBM’s integrated software and systems solutions capabilities, and demonstrate IBM’s strategic perspective on becoming a smarter busienss that excels in turning opportunity into outcomes in this new era of computing.

At the event, IBM will focus discussions on a variety of key “hot topics,” including those focused on speeding innovation with mobile computing, defending against cyber-threats with security intelligence, rethinking IT with cloud computing, and a host of others.

If you’re game, but need some compelling reasons to convince your boss to send you to Singapore, here’s a starter list:

1. Networking. You’ll have the opportunity in Singapore to network with peers, industry experts, and IBM thought leaders from around the globe, including IBM customers already collaborating to better align business and technology investments.
2. Learning. You’ll have the opportunity to learn from experts in our Solution Center, as well as through a personalized agenda of keynote session, “Hot Topic” sessions, and Exchange sessions built around your business interests.
3. Delivering New Value. At IBM Interconnect, you’ll become one of the first to learn how to manage the velocity of change from real world examples of business delivering new value to the people they serve.
4. Unleashing Innovation. You’ll also have the opportunity to begin to understand the new economics of IT, and how to use technology as the catalyst for unleashing innovation in your organization.
5. Uncovering New Markets. And finally, in an environment where most every organization is looking for new customers in new markets, you’ll have the opportunity to start to develop a clear plan of how you can reinvent relationships with yoru customers and workforce and, in turn, start to uncover those new markets.

Changing With The Changing Times

Rapid change has become the new normal, as entire industries are now transforming to deliver compelling new value to their customers. In this era of interconnected industries, businesses and consumers, a new kind of leadership is required to turn opportunity into business outcomes.

Smarter businesses are capitalizing on information as an indispensable resource and using technology as the catalyst for unleashing innovation. They are expanding the digital world of the back-office into the front-office and the corresponding business infrastructures that are at the heart of business leadership and operations; the key interconnection points among consumers, business partners and employees.

Take advantage of this opportunity to develop a personalized agenda around your business needs, collaborate with business decision-making peers, and meet face-to-face with technical decision-makers and industry experts.

You can start by first going here to register, then heading on over to the Session Preview Tool to start scanning the sessions to make sure you get the most out of your visit.

If you’ve never visited Singapore, I can’t recommend it highly enough. It’s like visiting a future that has already arrived, and in the meantime, you’ll have the opportunity to attend an IBM event that’s intended to help you create a future looming just over the horizon.

IBM Retail Online Index: Mobile Up, Social Down

If you’ve been following the mobile and social space, and especially if you own your own smartphone, you know the impact that that increased mobility means in terms of your ability to conduct business –- personal and professional –- while on the go.

Now, IBM has some empirical data that indicates those behavioral changes due to smartphone adoption are occurring on a more massive scale.

The IBM Retail Online Index, a cloud-based analysis of the online retail sector, integrates factual marketplace data from its analytics offerings, including the Benchmark, with insights from the IBM Social Sentiment Index, an advanced analytics and natural language processing tool that analyzes large volumes of social media data to assess public opinions.

The combination of these two offerings provides the most accurate and immediate snap shot on the state of the online retail market.

According to the latest IBM Retail Online report, mobile shopping rose while social media sales fell, providing an indication of where US retailers may invest in order to capture the attention and loyalty of the digital consumer. The IBM Retail Online Index reported that retailers experienced 15 percent growth in sales from mobile devices but saw a 20 percent decline in sales traced to social media based on a much smaller base over this three-month period.

This report follows today’s news from the U.S. Department of Commerce’s Census Bureau which announced its estimates of U.S. retail and food services sales. According to the findings, retail sales fell 0.5 percent in June from May, the third straight month sales have been down from the month before. On a positive note, June 2012 sales were 3.8 percent above the pace of June 2011.

IBM’s Retail Online Index: Mobile Commerce Now 15% Of All Online Purchases

IBM’s Retail Online Index identified several trends of importance to chief marketing officers (CMO), e-commerce leaders and customer service professionals. Over the second quarter consumers continued to embrace mobile devices as a shopping tool, with mobile commerce accounting for 15.1 percent of all online purchases, an increase of more than 14 percent. Despite this momentum retailers are still struggling to sustain substantial success with their social media efforts, evidenced by a more than 20 percent drop in social shopping. 

According to IBM’s State of Marketing 2012 survey, one explanation for social commerce’s failure may be the absence of a CMO and CIO alliance which is critical as marketing and online commerce become increasingly technology-driven. The lack of this alliance hinders the deployment of integrated technologies capable of fueling effective social media efforts.

A second factor is marketing’s inability to form a clear consensus on how to utilize social channels. As a result, the retail online index saw a decline in positive sentiment around social media, which according to the online index dropped from 25.1 percent in Q1 to 18.6 percent in Q2. Leading factors for this shift were the lack of deals being offered by retailers through these channels, which were more prevalent in Q1.

More Shoppers Are Multi-Channel, Mobile And Social

“Shoppers today are shifting from a singular online approach to a multi-channel experience that includes both mobile and social media. As a result, retailers must be prepared to connect with their customers on all fronts, or lose them to the competition,” said Craig Hayman, General Manager, IBM Industry Solutions. “As we enter the home stretch for the 2012 holiday season, we will continue to watch how CMOs and CIOs tackle these challenges and create social media efforts that deliver value to the customer while driving revenue for the business.”

Over the second quarter, while online traffic and sales for Q2 were down 6.7 percent and 2.3 percent from Q1 respectively, there were signs of optimism. Specifically, for completed orders, shoppers bought more items (average items per order grew 2.6 percent) and spent more for each transaction (average order values for each purchase grew by 2.3 percent) over the second quarter.

Part of IBM’s Smarter Commerce initiative, the Retail Online Index draws data and insights from IBM’s big data offerings to provide the industry’s most comprehensive look into the pulse of online retail through traditional and social media channels. The index analysis for second-quarter 2012 reveals the following trends:

Online Retail Sales for Q2 2012 versus Q1 2012:

• Consumer Spending: Total online sales for the quarter were down 2.3 percent over Q1 2012.
• Average Order Value: The average value for each order in Q2 grew by 2.3 percent.
• Items Per Order: The average number of items per order increased by 2.6 percent.
• Page view Per Session: Page views per session dropped by 2 percent to 6.4 pages.
• Mobile Sales: Sales from mobile devices reached 15.1 percent, up from the 13.3 percent in Q1 2012.
• Mobile Devices: While Apple’s iPhone continued to rank one for mobile device retail traffic at 8.2 percent, Android surpassed the iPad which finished at 6.8 percent and 6.7 percent respectively.
• Social Traffic: Shoppers referred from social networks generated 1.3 percent of all online traffic over Q2 2012, a slight increase from the 1.1 percent seen the previous quarter.
• Social Sales: Shoppers referred to retailer sites from social networks generated 1.9 percent of all online sales over Q2 2012, a decrease from the 2.4 percent seen in Q1.

Online Retail Categories for Q2 2012 versus Q1 2012:

• Consumers further intensified their focus on the home with home goods sales growing by 35.3 percent in Q2.
• Department stores continued to catch the attention of consumers with sales growing 3.7 percent
• Jewelry stores maintained its upward track with sales growing by 1.4 percent.

Consumer Sentiment for Department Stores for Q2 2012 versus Q1 2012 based on the IBM Social Sentiment Index:

• Social Media: A potential result of retailers failing to deliver compelling campaigns through these channels, positive sentiment around social media dropped by 6.5 percentage points, from 25.1 percent in Q1 to 18.6 percent in Q2.
• Loyalty and Pricing: Where sales and clearing inventory were priorities in Q1, retailer prices returned to more normal rates in Q2, a shift that fueled negative sentiment around pricing which grew by 2.1 percentage points. These factors also impacted consumer loyalty where negative sentiment grew by 2.1 percentage points.

 

About IBM Smarter Commerce

IBM’s Smarter Commerce initiative delivers software and services to help companies transform their business processes to more quickly respond to shifting customer demands in today’s digitally transformed marketplace. The initiative is driven by the demands from organizations who are increasingly looking for ways to bring new levels of automation to marketing, sales and fulfillment to secure greater customer loyalty. The growth of mobile, social and online commerce are key trends within Smarter Commerce.

You can learn more about IBM’s Smarter Commerce initiative here.

InformationWeek’s IT Pro Ranking: Enterprise Social Networking

Click to enlarge. InformationWeek surveyed 405 IT professionals to evaluate enterprise social networking software. When it came to success metrics, fifty percent of respondents cited “user activity on the system” as a key metric of success.

We’ve seen a lot of consolidation in the social enterprise scene of late.

Most recently, Oracle bought Involver and Collective Intellect, Salesforce bought Radian6 and, later, BuddyMedia.

We’ve also started to see some report cards being issued about who’s leading in what arena.

Last week, InformationWeek released such a report, entitled “IT Pro Ranking: Enterprise Social Networking,” in which IW surveyed 405 IT pros to evaluate enterprise social networking software vendors.

IW explained that its ratings were based on two broad sets of criteria, the first for overall performance and items such as product reliability, innovation, and cost.  And second, category-specific features like status updates, team workspaces, and social bookmaring.

Six firms made the top box to receive a full evaluation: Drupal, Google Sites, IBM Lotus Live/Lotus Connections, Microsoft SharePoint, Salesforce.com Chatter, and Yammer (the study was apparently conducted prior to Microsoft’s recent acquisition of Yammer).

In terms of overall performance, Google Sites came out on top as the “best-performing” vendor (73%), but IBM’s Lotus Live/Lotus Connections and Salesforces’ Chatter were just a percentage point behind Google (72%), “indicating a tight race.”

Drupal arrived at 70%, and Microsoft 69%.

In terms of product reliability, Google, IBM and Salesforce came in on top with a 3.9 score, the highest mean average ranking for that criterion.

In terms of respondents’ rating of enterprise social networking features, Google earned the highest ranking at 77%, with IBM following at 75%, and Microsoft at 74%.

In terms of data security controls, IBM came out on top at 4.1, although Microsoft was close behind at 4.0.

The report had some other interesting insights, citing the need to “enable new services or applications” as the number one reason for replacing or adding a vendor, followed by “performance gains” and “operational cost savings.”  “Substantial operational cost savings” was cited as the number one reason for “factors resulting in a change in vendor,” followed by “substantial capital cost savings” and “clear technology advantage compared with current vendor.”

You can download the full report here.  Meanwhile, you can learn more about how your organization can garner measurable ROI with IBM Connections enterprise social software here.

New IBM Software Transforms the Digital Experience

The IBM Intranet Experience Suite pulls together company information and data, personalized content and news, and social media and analytics, enabling employees to connect, collaborate and access information at anytime, from anywhere.

IBM today announced new software that helps CMOs and CIOs transform the digital experience for employees, customers and fans across a broad range of mobile devices.

The IBM Intranet Experience Suite pulls together company information and data, personalized content and news, and social media and analytics, enabling employees to connect, collaborate and access information at anytime, from anywhere.

By 2017, the CMO will have greater control of the IT budget than the CIO, according to Gartner. Marketing budgets will grow 7-8 percent over the next 12 months, which is 2-3 times that of IT budgets.

With the growing number of mobile devices, social networks and social media tools on the rise, CMOs struggle to reach their audiences. At the same time, CIOs are struggling to provide access to company data on every type of device for a geographically distributed workforce.

Given the business realignment between marketing and technology, the CMO and CIO can no longer afford to operate on separate stages. To succeed, they’ll have to forge a shared agenda to deliver business results through innovation and efficiency, working together to streamline their technology needs.

The convergence of social and mobile is prompting organizations to revisit decades-old website to create exceptional web experiences to reach and engage with their audiences.

And despite their growing reliance on technology and their soaring budgets, CMOs readily admit they lack the skills that IT requires. According to the IBM CMO Study, while 79 percent of CMOs expect high levels of complexity in their job over the next five years, only 48 percent feel prepared to deal with it.

Building on these increased demands, IBM is delivering a new Customer Experience Suite giving millions of marketing professionals the power to manage and integrate all types of data on their web sites and then analyze it for deeper insight into customer buying patterns and sentiment.

Also delivered today, the new IBM Intranet Experience Suite pulls together company information and data, personalized content and news, and social media and analytics, enabling employees to connect, collaborate and access information at anytime, from anywhere.

The Power of Social, Mobile And Analytics

The new IBM Intranet Experience software brings together the power of social networking, analytics and mobile computing to front office operations and externally to clients, allowing companies to create exceptional Web experiences. As a result, organizations can gain faster insight on customer buying patterns and consumer sentiment allowing them to more quickly reach and engage their audiences.

At European industrial automation technology manufacturer Omron, employees are connecting knowledge and technical know-how through the organization’s Intranet, helping to meet the specific needs of their customers.

Omron delivers an exceptional Web experience through a single communication platform that embeds relevant social data into the daily workflow. Omron has sped knowledge sharing across boundaries and between departments, enabling employees to support customers better and faster.

Working with IBM and its partner Portico, Omron created an award-winning business intranet, called Ozone internally, helping to create a single-source communication and collaboration platform for all 1,700 European employees.

The IBM Intranet Experience Suite integrates with external social media, including Twitter, LinkedIn and YouTube, allowing employees to pick and choose which applications they want in their Intranet view. For example, a sales manager can leverage the Cognos software integration to ensure a clear view into monthly sales reports by region, as well as competitive background on new product updates and forecasts.

“The world is changing and is becoming increasingly connected and social,” said Michel Min, Head of Strategic Communication & eMarketing, Omron Europe B.V. “Because of this, we know our clients are changing as well, which is why it’s increasingly important to ensure our sales teams have the right information at the right time.”

Analytics to Help Marketers Engage Audiences 

From digital marketing and mobile commerce, to websites and social media, marketers are inundated — often paralyzed — by data amassed from consumers via searches, purchase histories, Facebook “likes” and comments on Twitter.

Combine that with data about in-store traffic, conversations with call centers and updates from suppliers, today’s marketers confront a daily deluge of data waiting to be sifted for nuggets of intelligence they can act upon to boost their business.

Because of this, it’s critical for CMOs to not only be aware of and monitor the social conversation, but to truly understand the sentiment and interact one-on-one with that customer. Taking it one step further would be to integrate these conversations directly into the organization’s web site, providing one place to both network and shop.

The new IBM Customer Experience Suite provides CMOs with the power to manage and integrate all types of data on their web sites and then analyze it for deeper insight into customer buying patterns and sentiment.

Web data has evolved today to include social media, videos, and web-based forms, as well as traditional enterprise data such as financial, customer and order data, and transactions. The software suite pulls together IBM’s market-leading enterprise portal, web content management, forms, and enterprise social networking software into a single view.

CIOs Creating Exceptional Intranets To Help Employees Gain Insight from Data Deluge

The new IBM software also helps business leaders extend their corporate intranet to a broad range of mobile devices in an effort to deepen employee collaboration and information sharing.

According to IDC, employees typically see up to a 30 percent increase in productivity using social tools internally to complete their work. With unlimited access to any type of information, consumers expect this same level of information availability in their professional lives, in order to work efficiently and reach business goals quickly.

The new IBM Intranet Experience software brings the power of social and analytics capabilities to CIOs and lines of business employees helping organizations innovate and evolve their internal operations and communications. The solution pulls together company information and data, personalized content and news, and social media and analytics, enabling employees to connect, collaborate and access information at anytime, from anywhere.

You can learn more about the IBM Intranet Experience Suite here.

Shopping In The Great White North

IBM recently announced a big win in its “smarter commerce” initiative. SHOP.CA, Canada’s largest online e-commerce marketplace, is using analytics software from IBM’s smarter commerce initiative to help engage increasingly empowered online consumers in a unique shopping experience, and build loyalty and sense of community.

A recent IBM survey of more than 2,000 Canadians showed friends and family are by far the most trusted influencers on purchasing decisions, but retailers are also gaining trust among shoppers here.

The same research also identified a growing movement among consumers to use social media to build communities with others who share their interests and tastes, and who consume the same. These strangers then help the consumer make more relevant discoveries and satisfying purchases.

SHOP.CA: One Stop Online Shopping

SHOP.CA’s online marketplace features millions of products across 26 categories and billions in multi-merchant inventory. Its website offers Canadians one-stop access to national and international brands, free shipping, free returns and no cross-border fees.

Also hosting a powerful loyalty program, SHOP.CA Rewards Dollars are offered for both purchases and online activities that generate a purchase, such as sharing a link to a favorite product with a friend, or posting written or video reviews to social media sites like Facebook and Twitter.

“With SHOP.CA, shopping will be forever changed in Canada,” says Don Tapscott, author and world leading business strategist. “It’s going to make shopping ‘social.’ People will become deeply engaged in the community. They’ll learn from each other. They’ll be able to collaborate, and because of the loyalty programs, they’re going to want to come back.”

SHOP.CA selected IBM’s technology as the e-commerce engine to power its consumer storefront, multi-merchant product catalog and SHOP.CA rewards program. IBM will also provide analytics on how site visitors behave and interact, as well as track their searching and buying histories. This data will get SHOP.CA insight on how, when and where to reach shoppers with content and offers personalized to their taste and preferences via mobile or social vehicles.

Smarter Commerce: A $20 Billion Software Market

Estimated at $20 billion for software alone, IBM has defined smarter commerce, a new, unfolding market driven by Web, social and mobile technologies which put more power in the hands of customers.

Today, 70 percent of the consumer’s first interaction with a product or service takes place online, and 64 percent of consumers make a first purchase because of a digital experience. Under the terms of the agreement, IBM is providing SHOP.CA with Coremetrics web analytics delivered through the cloud and IBM WebSphere Commerce Professional.

Go here to learn more about IBM “smarter commerce” solutions.

In the video below, Scott Laningham and I interview Don Tapscott at this year’s SXSW Interactive Festival about how digital technology is changing our world, detailing for us mere mortals its impact on business, education, children, and beyond.