New IBM Study: The Business of Social Business

IBM’s recent study on “The Business of Social Business” revealed three major areas where organizations can most effectively apply their social business investments. The study surveyed more than 1,100 businesses worldwide, and included extensive interviews with more than two dozen widely recognized leaders in social business. You can find a link to a downloadable version of the study later in this blog post.

If you’ve been looking for a study that will help you better understand how organizations around the globe are viewing the opportunity social business presents as a fundamental way by which to rethink and overhaul how they conduct their business operations in the social age, IBM has something for you.

Earlier today, we released the new IBM Institute for Business Value study entitled “The Business of Social Business.”

This was a survey conducted of more than 1,110 businesses around the world, and with extensive interviews with more than two dozen recognized global leaders in social business. Many of those executives explained to IBM that, in fact, social business is gaining traction in their organizations.

Top line, 46 percent of the companies surveyed increased their investments in social business in 2012, and 62 percent indicated they were going to increase their expenditures in the next three years.

As the executive summary of the report stated, “The question surrounding social media today is not whether you are doing but, but whether you are doing enough.

Getting your 100,000th “Like” on Facebook, or having your latest pearl of wisdom retweeted 200 times an hour is all well and good, but are these activities driving revenue, attracting talent, and bridging the collaboration gaps in your organization?”

Is your use of social media allowing your organization to engage with the right customers, improve their online experience, and tap into their latest insights and ideas?

And does your social approach provide your customer-facing representatives with the ability to search the globe for expertise or apply learnings?

For far too many organizations, the answer are, “not yet.”

What IS Social Business?

IBM defines social business as embedding tools, media, and practices into the ongoing activities of an organization. It enables individuals to connect and share information and insights more effectively with others, both inside and outside the organization.

Social business tools facilitate engagement in extensive discussions with employees, customers, business partners, and other stakeholders and allow sharing of resources, skills and knowledge to drive business outcomes.

And what’s the upside? Top-line growth for social business users can improve between 3 and 11 percent, according to a recent study from the McKinsey Global Institute, and productivity can be enhanced by between 2 and 12 percent.

I’ll hand you off to a link of the full study later, but to net out the findings, IBM’s survey and interviews revealed three major areas where organizations apply social business investments (see graphic above):

• Create valued customer experiences
• Drive workforce productivity and effectiveness
• Acclerate innovation

Shifting Towards Sales And Service

For those who have been involved in the social media realm to date, it’s important to note that social business is about moving beyond basic promotional activities to encompass the entire customer lifecycle, including lead generation, sales, and post-sales service.

The IBM study had a sub-sample of clients with some social business experience which revealed that while the percentage of companies expecting to use social business for promotional activities will rise slightly, from 71 percent today to 83 percent in the next two years, the number of companies expecting to use social approaches to generate sales leads and revenue will increase dramatically.

How companies are using social business capabilities is evolving rapidly. As you can see in the graphic, it is moving beyond basic promotional activities to encompass the entire customer lifecycle, including lead generation, sales, and even post-sales service.

Today, 51 percent use social approaches for leads and revenue, while 74 percent plan to get on board in the next two years.  Post-sales support is also expected to increase, from 46 today to 69 percent over the next two years (see graphic entitled “Users of Social Business”).

Getting Started With Social Business

Regardless of where your organization is in its own social business journey, the use of social business practices is a transformation that leads toward new ways of working.

IBM’s research revealed three essential actions to be taken across the enterprise, from the CEO’s office to the farthest corner of the organization.

1. Develop social methods and tools to create consistent and valued customer experiences.
2. Embed social capabilities to drive workforce productivity and effectiveness.
3. Use social approaches to accelerate innovation.

If you’re interested in reading the full study, you can register to download it here.

As IBM’s vice president for social business, Sandy Carter, explained in the video interview below during our recent interview at the IBM Interconnect in Singapore, “culture eats strategy for lunch.” Sandy offered up some great advice on world-class social business practices, as well as how companies and individuals can better establish their brands in an increasingly crowded social marketplace.

Live @ IBM InterConnect 2012: Deepak Advani On Big Data Analytics

Deepak Advani, vice president with IBM’s Business Analytics organization, owns strategy and development for products in the business intelligence and predictive analytics arenas.

Deepak Advani has had a rich and storied career, starting out with IBM before later becoming chief marketing officer for Lenovo, then returning to the IBM fold to focus on the massive information management opportunity.

In particular, on business analytics, and how the improved utilization of technology for analyzing big data can help companies drive desired business outcomes.

Deepak owns the strategy and development for IBM’s Business Analytics products and solutions group, and his portfolio includes products for business intelligence, predictive analytics, risk analytics, social media analytics and financial performance management.

At IBM InterConnect recently in Singapore, Deepak sat down for a chat and explained how organizations should go about tackling the business analytics opportunity. He also provided some insight into the PureSystems PureData announcement, as well as to how organizations can more effectively utilize social intelligence data.

Live @ IBM InterConnect 2012: Marie Wieck On Business In Motion

Marie Wieck is general manager of IBM’s Application & Integration Middleware (AIM) business unit, where she leads an organization of more than 7,500 software development, marketing, services, and sales professionals. She is responsible for IBM’s WebSphere software portfolio and other strategic middleware products, including Web application servers, transaction and messaging systems, integration, and business process management solutions.

Marie Wieck is the general manager of IBM’s Application and Integration Middleware organization (home of IBM’s distinguished market-leading WebSphere brand), and has held a variety of technical and executive roles across our software, services, and finance groups.

In her current role, Marie leads an organization of more than 7,500 software development, marketing, sales, and services professionals. There, she is responsible for IBM’s WebSphere software portfolio and other strategic middleware products, including Web application servers, transaction and messaging systems, integration, and business process management solutions.

During our sitdown at IBM InterConnect, Marie shared some of the proceedings from her two “Hot Topic” sessions in Singapore, one on the Mobile Enterprise, and the other on Business Process management.

Marie also expanded on IBM’s emerging “mobile enterprise” strategy, explaining that rather than see mobile as another blip on the technology evolutionary radar screen, that rather it’s an opportunity to be transformative across the enterprise.

From fomenting front-line employee’s opportunity to be more collaborative in the field, to enabling back-office overlords to use their smartphones to watch over and manage business process management processes, IBM is working to bridge systems of record and of data together with employees and external constituents in a much more transformative story than has been communicated to date.

It’s an exciting narrative, and as Marie conveyed in the interview, mobile is touching the entire IBM portfolio.

Live @ IBM InterConnect 2012: IBM’s Steve Mills On Big Data, Smaller IT

After months of build up and market anticipation, the IBM InterConnect event got kick started here at Royal Sentosa Resorts on Sentosa Island in Singapore, and after a quick introduction by IBM growth markets executive, John Dunderdale, IBM senior vice president Steve Mills hit the stage and outlined the core value proposition behind the event and, more broadly, behind IT circa 2012.

IBM senior vice president Steve Mills explains to the gathered IBM InterConnect 2012 audience in Singapore Tuesday morning the immense opportunity and value that a reconsidered IT investment strategy presents for its customers around the globe.

“We know all of you involved in running businesses are challenged with delivering outcome and results,” said Mills. “We clearly love technology, but the end goal is improving your business and business model.”

Delivering real, discernible business outcomes.  IT as a means to an end, not an end in and of itself.

Mills’ talk, entitled “Smarter Planet Solutions increasing Demands of IT,” then went on to explain and support that core thesis for the next 40 minutes, along the way sharing some eye-opening sound bytes and anecdotes.

Mills indicated that the IBM InterConnect event was designed “to give you more insight and more contacts and relationships that you can take advantage of to support your businesses.”

So yes, there would be plenty of best practices and lessons learned to come, but this convocation was also an opportunity to share and network with your peers and colleagues.

Information Technology: A Transformative Tool Of The Past 60 Years

Then Mills began to provide a big picture backdrop of IT, explaining that “technology is the transformative tool of the last 60 years, and no tool has ever done so much for humans as IT.”

But, Mills warned, we humans “sometimes get out ahead of ourselves,” and we become enraptured with the tools instead of focusing on what we can do with those tools.

The core questions, Mills went on to explain, that IT and business executives everywhere should be asking themselves is, “How do I use IT effectively, and at a price my business can afford, and in a way I can measure those discernible outcomes?”

Anything else, my own thought bubble indicated, is nothing more than snake oil off the back of a covered wagon!

Mills then went on to explain the specifics behind the IT challenge.  More servers, more users, more scenarios…more everything except, perhaps, more money and people!

Moving Away From Mundane Administration And Towards Increased Business Value And Innovation

And therein lies the core of the issue.  So much technology requires management and administration and focus by humans.  And yet, oftentimes we’re not even making full use of the IT we have.

By way of example: There are an estimated 32.6 million servers worldwide, but 85 percent of them are often idle, and 15 percent run 24/7 without being actively used.

They’re also energy hogs — data centers alone have doubled the energy use in the past five years, and most expect an 18 percent increase moving forward in data center energy costs.

And all the numbers trend upwards, Mills noted: Between 2000 and 2010, servers grew 6X and storage 69X, so if what’s past is prologue…

But it’s not even just that, all the growth we’ve witnessed in IT hardware and software. All of this has a cumulative effect — it’s not simply the money you spent in the current year, but in ALL the investments you’ve made over an extended period of time.

IBM senior vice president Steve Mills explained to the IBM InterConnect audience in Singapore earlier today the opportunity for organizations around the globe to break through the IT budget and resource barrier and realize new business insights and outcomes through an increased focus on innovation.

Though IT has been a big labor saver on the one hand, it’s also been a very expensive proposition in that it requires new skills and labor to manage. And that was another core point of Mill’s argument, that that labor cost has grown to a size to where we need to bring the overhead down while striving to increase the value IT delivers.

An Explosion Of Big Data…And Big Insights!

Mills went on to note there’s also been an explosion of data and information.  Google alone processes 24 petabytes of data in a single day, the New York Stock Exchange 1 terabyte of trading data in a single session.

What if…you could apply intelligent analysis to all that information, with an eye towards being more predictive…what if…you could be just 20 minutes ahead of your time…then what could you do???

Finding patterns in data that a single mind could never see, but with the right computing capacity…

So, both burden and opportunity, and this IT overload presents a management challenge — businesses want to be able to do more with what data they have, but they’re uncertain if they’re really getting to what the analysis could actually bring them.

Now, to the actual economics: IT operating costs were expected to have grown from $100 billion in 1996 to an estimated $217 billion in 2012, a trend NOT going in the right direction.

But as Mills explained, “The more servers you have the more servers you have to feed.”  Yet that spend on mundane tasks like server administration means you have to rob Innovation Peter to pay Administrivia Paul.

All that sprawl, Mills detailed, means costs to manage growth of inventory consumes the IT budget, and in turn, only 1 in 5 organizations are able to allocate more than half their IT budgets to drive innovation.

As it is, 23 percent of new IT projects deploy late, and 55 percent experience application downtime for major infrastructure upgrades once deployed. Top causes of project delays include troubleshooting and tuning production environments (45%), and integration, configuration and testing of applications (41%).

To add insult to injury, security incidents add an additional layer of complexity and frustration here: The average cost per data breach in 2011 was $3 million, figured in terms of lost customer loyalty.

These, Mills concluded, are the challenges that lay before you, the global IT audience.

Through the remainder of the event, and via several announcements emerging this week in Singapore, Mills suggested IBM would aspire to play a key role in helping clients address the velocity of change in business and IT, and help them redouble their efforts to garner those desired business outcomes.

Singapore Redux

I mentioned in an earlier post I would share a little information about Singapore.  Much of this, I crowdsourced liberally from the Wikipedia entry on Singapore, along with some of my own observations thrown in for good measure.

First, the city-state is formally referred to as the “Republic of Singapore.” If you’ve ever flown here from the U.S., you know that it’s one of the longer plane rides one can take.

I left Austin around 8 am last Friday morning, catching connecting flights in Atlanta and then Tokyo’s Narita, with both flights lasting around close to 24 hours flight time, and arriving here early Sunday morning (around 1:30 AM).

Singapore is an island country consisting of 63 islands, and separated from Malaysia by the Straigts of Johor to the north and from Indonesia’s Riau Islands by the Singapore Strait to its south.

The British founded modern Singapore when it obtained sovereignty over the island in 1824, and was later occupied by the Japanese in World War II. It later declared independence, uniting with other British territories to form Malaysia in 1963, then separated from Malaysia two years later.

It is known as one of the “Four Asian Tigers,” and is the world’s fourth leading financial center, with its ports being among one of the five busiest in the world.

Its economy depends heavily on exports and refining imported goods, and has the third highest per capita income in the world with slightly over 5 million citizens.

Its population is very diverse, and has four official languages: English, Chinese, Malay, and Tamil, and is one of the five founding members of the Association of South East Asian Nations.

It’s manufacturing base includes electronics, petroleum refining, chemicals, mechanical engineering, and biomedical sciences. It also produces about 10% of the world’s foundry wafer output, making it an integral part of the globe’s semiconductor industry supply chain.

It also has majored heavily in tourism (including so-called “medical tourism”), and to attract more tourists it legalized gambling in 2005 (The IBM InterConnect conference is being held at Royal Sentosa Resorts, which has one of those casinos).

This is my second visit to Singapore (my first being in early 2010), and my impressions on both visits have been quite favorable. For a Westerner who doesn’t know Chinese, Malay or Tamil, it’s quite easy for an English speaker to find their way around.

The city-state itself reminds me of Dallas or Houston, what with its shiny, chrome and beige skyscrapers and ports surrounding parts of the island.

But it’s also very futuristic and forward-thinking, having invested early on in commercialization of the Internet and hosting a robust mobile computing infrastructure. Singapore is one of the most ubiquitous Internet penetrated of nations in the world, with over 77 percent of its citizens having online access.

And the “Intelligent Nation 15” ten-year blueprint I mentioned earlier has refined that digital capability, and in fact, the country has emerged as a vital foundry for Internet-based companies.

By way of example, Facebook co-founder Eduardo Saverin relocated here in 2009, announcing plans to invest in “companies with strong interests in the Asian markets.”

Singapore’s National Research Foundation selected eight new incubators for its Technology Incubation Scheme earlier this year, and through that program, the NRF will co-fund up to 85 percent of total investment in each company (up to U.S. $400K).

And talk about a mobile-friendly country. I only needed walk through either Singapore’s Chinatown or “Little India” yesterday afternoon to find mobile phones from around the globe available to me (and settled on an old-school Nokia 1280 to serve as my new GSM “world phone”).

I paid $20 to a local mobile retailer catering to the Indian market, and within minutes (along with the purchase of an $18 SIM card) was up and running.

For the casual visitor, though the city itself can seem expensive compared to other industrialized countries, deals abound, including for food (the cuisine here runs the gamut, from Chinese to Malay to Japanese to India to American, etc.), and that most national of Singaporean pasttimes, shopping.

If you’re a night owl, you’ll certainly find plenty to do here, what between the casinos, the food, and yes, even the nightlife.

As for me, the rest of this week I’ll mostly be stuck in front of the camera or my laptop covering IBM InterConnect here on Sentosa Island, but I hope and expect to sneak in a few noodles or pieces of dim sum along the way.

IBM InterConnect begins first thing tomorrow, so don’t forget to tune in to our Livestream channel and to Twitter hashtag #ibminterconnect so you can keep up with all the emerging announcements and news from IBM in this important and digitally vital part of the world!

Connecting @ IBM InterConnect Singapore

Greetings from Sentosa Resort Island in Singapore.

The Republic of Singapore, a southeast Asian city-state off the southern tip of the Malay Peninsula, is 85 miles north of the equator, and is playing host to the IBM InterConnect event this week, which Turbo will be covering here in his blog and as part of IBM’s InterConnect Livestream video coverage.

What’s past is present, except when you’re traveling on business in Asia, when what’s present is prologue. In the case of Singapore, that’s likely to be the case in more ways than one.

Yes, earthlings of the West, I now come to you from the future, some 13 hours ahead of you here in this antiseptic, futuristic city-state, where broadband is plentiful and where the world’s global diaspora lands along with the beams of light helping Singapore to lead us all into the information future.

You’ve heard of the man with the plan? Well, Singapore is a country with the plan.

“Intelligent Nation 2015,” a 10-year masterplan by the government here to help Singapore realize the potential of “infocomm,” is a blueprint for navigating the city-state’s transition “into a global city, universally recognised as an enviable synthesis of technology, infrastructure, enterprise and manpower.”

If Singapore’s future is in information communications, then it is only appropriate that IBM clients, business partners, employees and others in the IBM ecosystem began landing here over the weekend to attend the IBM InterConnect event.

As we positioned the event on the Web site, “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 a bountiful resource and using technology as the catalyst for unleashing innovation.”

Now, for a moment, just close your eyes, and imagine the word cloud that is emerging in front of you: Interconnected. Opportunity. Smarter. Resource. Technology. Innovation. Outcomes.

Starting tomorrow, Tuesday, October 9th, we will begin exploring that word cloud in some depth — “we” being IBM clients, business partners, execs, subject matter experts and others.

First, we’ll look at the 10 hot topics that address key business imperatives in this uncertain climate, helping organizations to unleash innovation while pacing the velocity of change.

Second, we’ll share best practices that have been learned directly from successful IBM clients and partners.

Third, as is always the case at our favorite IBM events, we’ll foster a milieu for collaboration: With business decision-making peers and other like minded folks.

And we’ll enable you to meet many of these decision-makers and industry experts, face to face.

As for me, I’ll be covering some of these sessions, in particular the keynotes, here in the Turbo blog.

I’ll also be interviewing those numeourous thought leaders and partners and clients and IBM executives for our LiveStream video coverage.

So, keep your eye out here, and be sure to follow the #ibminterconnect hashtag on Twitter to get all the latest.

In future posts, I’ll convey a little more about the city-state that is Singapore.