Gladly Pay You Tuesday…

We’re finally getting some rain in central Texas.  We’ll see how long it lasts!

And on the topic of rainmaking, this just in from our friends at Nucleus Research.

Nucleus conducted an analysis of 21 of IBM Smarter Commerce case studies and their ROI, and discovered that for every dollar spent, companies realized an average of U.S. $12.05 in returns.

According to the research, this payback occurred in an average of 9 months (with a high of 23 months, and a low of two).

The cases Nucleus analyzed included U.S. and European companies and government agencies which had deployed IBM Smarter Commerce technologies.

All the case studies were developed independently by Nucleus, following their standard ROI methodology, and IBM was privy to the results only after the research was completed.

In their analysis, Nucleus also observed some summary conclusions, finding that Smarter Commerce projects delivered both top-line and bottom-line benefits, with roughly 60 percent of returns coming from indirect benefits such as productivity, and the rest from direct savings such as reduced operational costs or hires avoided.

Specific key benefits included the following:

• Increased productivity. In many cases companies were able to accomplish more work with fewer staff or avoid additional hires as they grew by automating previously manual processes and increasing employee productivity.
• Reduced costs. Smarter Commerce customers experienced cost reductions in areas such as customer call handling costs, technology costs, and other costs associated with supply chain transactions.
• Improved inventory management. Greater visibility into customer demand and inventory levels enabled Smarter Commerce customers to gain better control over their inventory, reducing inventory carrying costs and increasing inventory turns.
• Improved decision making. Greater agility and rapid insight into data for decision making enabled companies using Smarter Commerce to more quickly make decisions and act on them with confidence.
• Reduced customer churn and increased customer satisfaction. Companies using IBM Business Analytics were able to more rapidly understand customer satisfaction and retain more profitable customers by proactively addressing customers’ propensity to churn. For example, one telecommunications customer was able to reduce customer churn by 8 percent in the first year and 18 percent in the second year by further refining its churn analysis.

Customers Leverage Prepackaged Functionality

Nucleus indicated that the $12.05 average return from Smarter Commerce was at the high end of the range of returns Nucleus had seen from other assessments of deployments such as analytics and CRM, and many IBM Smarter Commerce clients indicated they had achieved high returns by taking advantage of the investments IBM has made in providing integrated solutions, more intuitive user interfaces, and prepackaged industry functionality.

By way of example:

• Integrated solutions and prepackaged industry functionality accelerate time to deployment and time to value while reducing overall project risk.
• Usability improvements drive more rapid adoption and make it easier for companies to drive adoption of technologies such as business analytics to casual and business users beyond the data expert specialists that have historically been the primary users of analytics.

Industry-specific functionality and expertise were particularly important in the success of customers adopting Smarter Commerce technologies in the government sector, such as social services agencies and police departments, where IT often has limited resources.

You can go here to download the full report.

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.

IBM To Acquire HR And Talent Management Firm Kenexa

IBM today announced that it had entered into a definitive agreement to acquire Kenexa Corporation, a publicly held company headquartered in Wayne, PA, in a cash transaction at a price of $46 per share, or at a net price of approximately $1.3 billion.

“Every company, across every business operation, is looking to tap into the power of social networking to transform the way they work, collaborate and out innovate their competitors,” says Alistair Rennie, general manager, social business, IBM, explaining IBM’s rationale for acquiring HR and talent management provider Kenexa Corporation for $1.3 billion cash earlier today.

The acquisition bolsters IBM’s leadership in helping clients embrace social business capabilities while gaining actionable insights from the massive streams of information generated from social networks every day.

The adoption of social business technology is supporting the growth of big data and the need for analytics in the enterprise. A recent global IBM study revealed that 57 percent of CEOs identified social business as a top priority and more than 73 percent are making significant investments to draw insights into available data.

The survey also reveals that 70 percent cite human capital as the single biggest contributor to sustained economic value. The combined strengths of IBM and Kenexa are key differentiators at a time when organizations of all sizes are looking to increase workforce efficiencies and gain more insight from their business information.

Kenexa: Providing World-Class Social Business Capabilities

Kenexa is a leading provider of recruiting and talent management solutions. They bring to IBM a unique combination of cloud-based technology and consulting services that integrates both people and processes, providing solutions to engage a smarter, more effective workforce across their most critical business functions.

Kenexa complements IBM’s strategy of bringing relevant data and expertise into the hands of business leaders within every functional department, from sales and marketing to product development and human resources. As a result of this synergy, clients will be able to attract and develop the right skills to build the right teams, for the right projects, the first time.

Social media has pervaded the lives of consumers, helping them connect with each other in new ways. However, a shift is occurring in the enterprise as business leaders look for ways to generate real value through the use of social technologies to evolve their front-line business operations.

According to Forrester Research, the market opportunity for social enterprise apps is expected to grow at a rate of 61 percent through 2016.

“Every company, across every business operation, is looking to tap into the power of social networking to transform the way they work, collaborate and out innovate their competitors,” said Alistair Rennie, general manager, social business, IBM. “IBM is uniquely positioned to help clients generate real returns from their social business investments, while helping them gain intelligence into the data being generated in these networks to be more competitive in their markets.”

Social Business Creating Value In The Enterprise

Today, Kenexa supports more than 8,900 customers across a variety of industries, including financial services, pharmaceuticals, retail and consumer, including more than half of the Fortune 500.

With Kenexa’s world-class front-office process solutions, IBM will be able to offer strategic consulting, a social technology platform, and expertise on a global scale to help clients enable a smarter workforce and gain a competitive advantage in any market.

By creating a smarter workforce, employees can resolve problems before they arise to improve customer service, drive innovation to bring products and services to market faster, and increase sales by building new skills — linking the right experts to the right clients.

The Kenexa acquisition will complement IBM’s social business and HR business services leadership. More than 60 percent of Fortune 100 companies have licensed IBM’s solutions for social business.

Through its combination of social software, analytics, content management, and deep industry expertise, IBM is uniquely positioned to help organizations capture information, create insights and generate interactions that translate into real business value.

With operations in 21 countries worldwide, Kenexa has approximately 2,800 employees. Consistent with its strategy, IBM plans to continue to support Kenexa clients and enhance Kenexa technologies while allowing these organizations to take advantage of the broader IBM portfolio.

IBM expects the transaction to close in the fourth quarter of 2012, subject to Kenexa shareholder and regulatory approvals and the satisfaction of other customary closing conditions.

Live @ IBM Smarter Commerce Global Summit Madrid: OgilvyOne Chairman & CEO Brian Fetherstonhaugh Speaks About The CMO Hotseat

Brian Fetherstonhaugh, as the chairman and CEO of OgilvyOne Worldwide, has a unique vantage point on how brands are built, how corporate cultures are created, and what happens as the world goes digital. In the course of the past 25 years, Brian has worked hands-on with many of the world’s leading brands including, IBM, American Express, Cisco, Coca-Cola, Motorola, Unilever, Nestlé, Kodak, and Yahoo! Today, Brian leads OgilvyOne Worldwide, the interactive marketing and consulting arm of the Ogilvy Group. With more than 4,000 staff in 50 countries, OgilvyOne is at the forefront of the digital revolution. In 2007 and 2009, the Forrester Report ranked Ogilvy as a leading U.S. interactive agency.

OgilvyOne Worldwide Chairman and CEO Brian Fetherstonhaugh started our Q&A today here at the IBM Smarter Commerce Global Summit in Madrid by revealing who his favorite character on the 1960s-era AMC show about advertising, “Mad Men,” was.  Drum roll, please….It’s…JOAN.

Mainly, Brian explained, because Joan “gets things done.”

We then turned our discussion to the vast evolution IBM’s own marketing culture has endured the past two decades, and the opportunities and challenges presented by the changing marketing landscape for CMOs, whose tenures these days last an average 27 months.

Brian also discussed other key issues facing chief marketing officers during this time of great change, including the need for CMOs to focus on new talents and skills development. Before he jetted off to another city somewhere in the world, Brian left the IBM Smarter Commerce Global Summit, and you, with some valuable marketing advice.

And when you watch the video, never mind the Spanish waiter who entered the frame for just a moment: He was simply doing what we wish to see companies everywhere do best, servicing their customers!

IBM Board Names Ginny Rometty New IBM President & CEO

The IBM board of directors has elected Virginia M. Rometty president and chief executive officer of the company, effective January 1, 2012.

She was also elected a member of the board of directors, effective at that time. Ms. Rometty is currently IBM senior vice president and group executive for sales, marketing and strategy. She succeeds Samuel J. Palmisano, who currently is IBM chairman, president and chief executive officer. Mr. Palmisano will remain chairman of the board.

“Ginni Rometty has successfully led several of IBM’s most important businesses over the past decade – from the formation of IBM Global Business Services to the build-out of our Growth Markets.”

“Ginni Rometty has successfully led several of IBM’s most important businesses over the past decade – from the formation of IBM Global Business Services to the build-out of our Growth Markets Unit,” Mr. Palmisano said.

“But she is more than a superb operational executive. With every leadership role, she has strengthened our ability to integrate IBM’s capabilities for our clients. She has spurred us to keep pace with the needs and aspirations of our clients by deepening our expertise and industry knowledge. Ginni’s long-term strategic thinking and client focus are seen in our growth initiatives, from cloud computing and analytics to the commercialization of Watson. She brings to the role of CEO a unique combination of vision, client focus, unrelenting drive, and passion for IBMers and the company’s future. I know the board agrees with me that Ginni is the ideal CEO to lead IBM into its second century.”

IBM Board of Directors Elects Virginia M. “Ginni” Rometty President and CEO of IBM: Samuel J. Palmisano and Virginia M. “Ginni” Rometty at IBM’s corporate headquarters in Armonk, N.Y.  Rometty, an IBM senior vice president, was elected by the IBM board of directors to become the company’s president and ninth CEO on January 1, 2012.  Palmisano, currently IBM chairman, president and CEO, has significantly transformed IBM.  During his tenure as CEO, the company has delivered record financial performance and breakthrough innovations, such as Watson. Mr. Palmisano will remain IBM’s chairman. [Photo: Jon Iwata/IBM]

Ms. Rometty said: “There is no greater privilege in business than to be asked to lead IBM, especially at this moment. Sam had the courage to transform the company based on his belief that computing technology, our industry, even world economies would shift in historic ways. All of that has come to pass. Today, IBM’s strategies and business model are correct. Our ability to execute and deliver consistent results for clients and shareholders is strong. This is due to Sam’s leadership, his discipline, and his unshakable belief in the ability of IBM and IBMers to lead into the future. Sam taught us, above all, that we must never stop reinventing IBM.”

Mr. Palmisano, 60, became IBM chief executive officer in 2002 and chairman of the board in 2003. During his tenure, IBM exited commoditizing businesses, including PCs, printers and hard disk drives, and greatly increased investments in high-value businesses and technologies. He has overseen the significant expansion of IBM in the emerging markets of China, India, Brazil, Russia and dozens of other developing countries, transforming IBM from a multinational into a globally integrated enterprise. In 2008, he launched IBM’s Smarter Planet strategy, which describes the company’s view of the next era of information technology and its impact on business and society.

Since Mr. Palmisano became CEO, IBM has set records in pre-tax earnings, earnings per share, and free cash flow. During Mr. Palmisano’s tenure, IBM increased EPS by almost five times, generated over $100 billion in free cash flow, and invested more than $50 billion in research and development – creating over $100 billion of shareholder value since 2002 through an increase in market capitalization and dividends paid.

As global sales leader for IBM, Ms. Rometty, 54, is accountable for revenue, profit, and client satisfaction in the 170 global markets in which IBM does business. She is responsible for IBM’s worldwide results, which exceeded $99 billion in 2010. She also is responsible for leading IBM’s global strategy, marketing and communications functions. Previously, Ms. Rometty was senior vice president of IBM Global Business Services. In that role, she led the successful integration of PricewaterhouseCoopers Consulting — the largest acquisition in professional services history, building a global team of more than 100,000 business consultants and services experts. She has also served as general manager of IBM Global Services, Americas, and of IBM’s Global Insurance and Financial Services Sector.

Ms. Rometty joined IBM in 1981 as a systems engineer. She holds a Bachelor of Science degree with high honors in computer science and electrical engineering from Northwestern University.

Hiring Practice: Results From IBM’s Global HR Study

Despite lingering concerns about high unemployment and continued anemic hiring in the U.S., the IBM Institute for Business Value’s study of over 700 Chief Human Resource Officers and senior executives from 61 countries and 31 industries worldwide suggests one potential, and somewhat ironic, antidote: Growth market companies, led by China and India, are increasingly hiring in North America and Europe.

Unlike the traditional pattern of movement, whereby companies in mature markets seek operational efficiency through headcount growth in emerging economies, the study demonstrates that workforce investment works both ways.

The findings suggest that as companies expand globally, the need to identify workforces with the creativity, flexibility and speed to capitalize on growth opportunities is becoming a priority, leading to an increase in their workforce presence in North America, Western Europe and other mature markets.

The 2010 Global Chief Human Resource Officer study, titled “Working Beyond Borders,” found that though organizations continue to develop and deploy talent in diverse areas around the globe at an accelerated rate, the rationale behind workforce investment is changing.

By way of example, the IBM study indicates that:

• 45 percent of companies in India plan to increase their headcount in North America and 44 percent will expand in Western Europe
• 33 percent of companies in China plan to increase headcount in North America and 14 percent will grow in Western Europe.

“The silver lining of globalization is that the shift toward expansion will require companies to redirect their workforce to locations that provide the greatest opportunities, not just the lowest costs, and at the same time, re-imagine their management strategies to reflect an increasingly dynamic workforce,” said Denis Brousseau, Vice President, Organization and People, IBM Global Business Services.

Organizations need to identify new partnerships and relationships that allow them to gain access to needed skills and capabilities. They must be willing to gather information and share insights from a diverse group of employees around the globe.

“More than ever before, competitive success will depend the leadership talent to assimilate information and share insights among a diverse group of employees around the globe.”

Another major finding of the study is that while social networking and collaboration may be regarded by many as a “soft” skill, study data suggests it can have bottom-line consequences:

• Financial outperformers (as measured by EBIDTA) are 57 percent more likely than underperformers to use collaborative and social networking tools to enable global teams to work more effectively together.
• Respondents indicated they most frequently employ collaboration tools to enhance the effectiveness of corporate communications and learning programs and to target and recruit external candidates.
• 21 percent of companies have recently increased the amount they invest in the collaboration tools and analytics despite the economic downturn.
• 19 percent of respondents regularly use collaborative technologies to identify individuals with relevant knowledge and skills, 23 percent to preserve critical knowledge, and 27 percent to spread innovation more widely.

I’ll let others decide whether or not IBM is considered one of those outperformers, but there can be no question IBM has embraced the approach of leveraging collaboration tools to enhance our corporate communications and collaboration.

By way of example, hardly a week goes by when I’m not tapped via our internal “Blue Pages” directory, which includes sections on skills and knowledge, to speak with a customer about social media requirements.  Our directory helps IBMers find other subject matter experts across a vast range of skills and expertise in the company’s over 400K workforce.

Emerging Economies: Invested In Leadership Development

According to the study, companies struggle to both find and nurture effective future leaders, and less than one in three executives interviewed rated their companies as adept at leadership development – a surprisingly low number given its relative importance.

However, even during the height of the global recession, 33 percent of respondents in mature markets and 43 percent in growth markets increased their investment in leadership development, significant numbers despite the cost containment initiatives many companies instigated at the time.

The ability to develop effective leadership, strategically build and deploy the workforce, and stimulate knowledge sharing and collaboration frequently hinges upon the information available to make evidence-based decisions regarding the workforce. However, for many organizations, this level of insight continues to be elusive. Only seven percent of respondents say they are very effective at using analytics to make workforce decisions.

Many companies have the capability to use analytics to look backward to identify historical trends and practices within their organizations.

Yet few are adept at using information to develop scenarios and predict future outcomes. Only in developing future leaders and business strategy did more than a quarter of the CHROs interviewed use analytics for forward-looking analysis.

You can register to download the full study here.