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© 2012 IBM Corporation Social Media and Innovation in IBM - Anders Quitzau, innovation Executive 1 CBS 27.3.2012 AndersQuitzauIbm

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Presentation to CBS students on March 27, 2012. IBM's internal and external use of social tools and conceptsto innovate. Examples of how we use IBM Connections. http://www-01.ibm.com/software/collaboration/social/business/

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© 2012 IBM Corporation

Social Media and Innovation in IBM

- Anders Quitzau, innovation Executive

1

CBS 27.3.2012

AndersQuitzauIbm

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© 2012 IBM Corporation

Social Media & Innovation

IBM’s definition of innovation

§ Intersection of invention and insight§ Creates value

§ Holistic view– Business model– Products & services– Operations

“Innovation is a societal -- not a

technological -- phenomenon, Sam Palmisano, CEO, IBM Corporation

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© 2012 IBM Corporation

Social Media & Innovation

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IBM’s early days....

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© 2012 IBM Corporation

Social Media & Innovation

We Embrace Collaborative & Open Innovation

Enabling culture change

§ Established an innovation agenda that spans multiple dimensions:– Product – Services – Business process– Business model– Management and culture– Policy and society

§ Enabled global collaboration– Culture of collaboration – Innovation ecosystem

Why? What we’ve done

§ Become our clients’ “innovation partner”– Address client priorities– Build deeper client relationships

§ Respond to changing nature of innovation § Organizations need each other to be

successful– Pace of innovation outstrips an

organization’s ability to “go it alone”

§ Changing workforce dynamics– Globalization– “Millennials”

Venture Capitalists ISVs Business

Partners

Universities§ Technical§ Business

CommunityLeaders

CompetitorsEmployees

Regulatory Bodies

Investors IT Analysts

Alumni

StandardsBodies

Policy-makers

ClientsInnovation Ecosystem

“We opened up our labs, said to the world, ‘Here are our crown jewels, have at them’. The Jam -- and programs like it – are greatly accelerating our ability to innovate in meaningful ways for business and society.” - Sam Palmisano, IBM CEO

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Social Media & Innovation

Innovation is about people – Getting ideas on the table – and implementing the best

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Social Media & Innovation

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Banks are receiving new innovative ideas from both internal and external sources

Source: The Global CEO Survey 2006

§ “…external, comes from client panels, customers and marketing intelligence…”

§ “…all employees are urged to look for innovation and good ideas…”

§ “…CEO pushes marketing to ‘steal three good ideas’ from competitors and make them better…”

§ “…main source of innovation is individual business itself…”

§ “…vendors are great source of innovation; also use academia…”

Internal & External Sources for New Idea GenerationCustomers directly

Employees (general population)

Consultants

Internal sales and service units

Business partners

Associations, trade groups, conf boards

Competitors

Other

Think-tanks

Academia

Internal R and D

Media, Publications

Internet

Citizens

Labs/Other Govt institutions 0 %

2 %

2 %

2 %

4 %

6 %

6 %

6 %

17 %

19 %

23 %

25 %

27 %

35 %

38 %

Internal Sources

External Sources

Banking CEOs on Sources of New Ideas:

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© 2012 IBM Corporation

Social Media & Innovation

At IBM, ideas are generated from multiple sources within and outside …

Idea

Idea programs

Market Intelligence

Global Technology Outlook

Business Unit Strategies

First-of-a-KindProgram

On Demand Transformation Strategy

New TechnologiesVenture program

University Programs

Global Innovation Outlook

Emerging Business Opportunity Program

Institute for Business Value

Ideation Sources

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© 2012 IBM Corporation

Social Media & Innovation

Manufacturing Customer FulfilmentMajor Employee Sites

IBM Research Centers

Employee Service Centers

• 170 countries• 2,000 locations• Nearly 100

acquisitions since 2003

• 50% employees have < 5 years experience

IBM location Mobile employees

IBM has a workforce of over 500,000 of which almost 50% are mobile

LC

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Social Media & Innovation

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Generational shifts unleash different work styles

New generation(born after 1980)

Mid- career workers(Age 35 – 50)

Older workers(Age 50 +)

growing as % of workforce

social  networkingemail instant  messaging

shrinking as % of workforcegrowing as % of workforce

wisdom and intellectual capital of the organization

essential professionals and middle managers

critical to long-term viability and innovation

social  networkingemail instant  messaging

shrinking as % of workforcegrowing as % of workforce

wisdom and intellectual capital of the organization

essential professionals and middle managers

critical to long-term viability and innovation

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© 2012 IBM Corporation

Social Media & Innovation

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What effect does Gen Y have in “real life”?

- Work in teams -

- non-hierarcical organisation

- work flexible with Mobile and Cloud

- Customization / Engagement / Entitlement

- Corporations wants talents!

- Where is knowledge management in 10 years? From APCO Worldwide

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© 2012 IBM Corporation

Social Media & Innovation

How I Work Collaborating from anywhere at any time.

How I Create Tapping into a wide variety of insight and expertise.

How I Buy Interacting with peers and engaging with the company.

Technology is dramatically changing the way we live

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© 2012 IBM Corporation

Social Media & Innovation

« A Social Business is a businessthat embeds «social» in all of its processes,connecting people to people, people to information,and data to insight.

It is a company that engages its employees andclients in a two-way dialogue with social tools, istransparent in sharing its expertise beyond its fourwalls, and is nimble in its use of insights to changeon a dime.

It is different from social media, in that social mediaprimarily adress or focus on marketing andpublic relations.»- Sandy Carter, Get Bold

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Social Media & Innovation

Customer Care and Insight

Product and Service Innovation

Workforce Optimization

A social business optimizes interactions among people to gain a competitive advantage

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Social Media & Innovation

Ideas source:Internal, partners and customers

Weeks to m

onths

Breadth

Today – As is

Service Service Service

Our philosophy of innovation is: Fail many, but fail cheap - A new paradigme in innovation enabled by Web 2.0:

Yesterday – as was

idea

Service

18 months to 2 years

Ideas source:Internal

§Use of exposed common capabilities to enable rapid service assembly

2§Larger variety of

compelling offerings to offer customers

3

idea idea

idea

ideaidea idea

idea

idea

ideaidea ideaidea idea ideaideaidea

§ Ideation and Product Inception from the expanding source for innovation

§Use Collaborative tools to solicit interactive feedback.

1

§Limited community to foster new innovation

§Little user interaction and market feedback

§Service silos §Limited reuse

§ “Build it and they will come” approach

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Social Media & Innovation

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Idea Management Override!

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© 2012 IBM Corporation

Social Media & Innovation

Innovation as a core discipline at IBM

I N S

I D

EO

U T

S I

D E

Partners

Clients

Internal Stakeholders

Sametime 3D

IBV reports

GlobalTechnology

Outlook

FOAK

Mobilize Interest, Collaborate

Mobilize Interest, Collaborate

Incubate, Prototype and

Validate Create

IdeaImplement,

Take to Market

IBM Lines of Business

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© 2012 IBM Corporation

Social Media & Innovation

What are Jams?

An introduction

How IBMhas used Jams

How customersare using Jams

How do Jams work?

• A massive online discussion using the Internet.

• A time-limited event that can elicit participation from thousands of individuals anywhere in the world.

• Subject-matter experts and moderators guide participants to build on each other’s ideas.

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© 2012 IBM Corporation

Social Media & Innovation

Jams Global collaborative inside/outside-firewall innovation enterprise-wide discussion, collaboration and decision-making

WorldJam 2001

A new collaborative medium to capture best practices on 10

urgent IBM issues

WorldJam 2004

Focused on pragmatic solutionsaround growth, innovation and

bringing the company’s solutionsTo life

ValuesJam

An in-depth exploration of IBM’sValues and Beliefs by employees

InnovationJam

For the first time, IBM’s clients, Business Partners, and ourFamily members joined in anew collaborative exercise

§Real-time threaded discussion§Open idea-rating§Equal access by all employees

WorldJam 2001

new collaborative medium to capture best practices on 10

urgent IBM issues

WorldJam 2004

focus on pragmatic solutionsaround growth, innovation and

bringing solutions to life

ValuesJam 2003

in-depth exploration of IBM’sValues and Beliefs by employees

InnovationJam TM 2006, 2008IBM’s clients,

business partners and family members joined in a new collaborative exercise

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Social Media & Innovation

“Ideas” Jam

Possible questions

Examples

Nato Security Jam 2010: AFGHANISTAN , CRISIS

MANAGEMENT , CLIMATE CHANGE, DEVELOPMENT , HUMAN RIGHTS,

COMPREHENSIVE APPROACH CAPABILITIES & TRAINING, RELATIONS WITH

RUSSIA & CHINA, PIRACY

Global Customer Electronics Manufacturer: Develop ideas to realise the company’s new strategy with it’s new values as the framework

IBM WorldJam 2004: Develop pragmatic ideas and solutions to drive company’s growth and innovation strategy

Example of topics/questions

§ Actionable ideas about a particular topic / challenge the business (enterprise) faces

§ Quantifiable inputs from jammers collaborating to bring the ideas to life

§ Establishing company (enterprise)-specific best practices and an action plan

Getting closer to our customers: How can we get better at delivering what our customers expect — and more? Understanding ourselves: What do our strategies and values imply for each one of us?Driving growth: How can we see and seize new growth opportunities?Creating a better company: What will it take to make our company the envy of our industry?

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© 2012 IBM Corporation

Social Media & Innovation

– During the 90-hour period of the Jam, Jammers:

• Represented people in 80 countries from over 1,000 companies across 20 industries

• Generated nearly 90K logins• Created over 32,000 posts• Read roughly 1.5 million pages, averaging 76

pages per Jammer.

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Participation with Breadth and Depth

Executive Report – 2008 Innovation Jam

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Social Media & Innovation

We often run ‘mini-jams’ using IBM Connections blog-tool to elicit ideas for innovation workshops with customers

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© 2012 IBM Corporation

Collaborative Innovation

withInnovation Hubs

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Innovation Hubs24x7 innovation marketplace

§ Localized collaborative innovation model for directed results

§ Next iteration of ThinkPlace program

§ Integrates Lotus Connections social network with idea sharing

§ Sharing business needs, innovation, implementation and recognition

§ $778M estimated impact of idea programs:

– 45% new revenue opportunities– 37% time savings improvements– 18% cost savings improvements – cultural suggestions

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Social Media & Innovation

Innovation Hub: 24x7 Idea Marketplace

§ Open, collaborative system: ideas submitted, discussed, then refined by community

§ Every employee can see ideas from others, comment on ideas, rate them, or tag them

§ Facilitates social networking by using tagsto enable discovery of similar ideas and peoplewith similar interests

§ Personalized action lists with simple workflowfor idea evaluation and collaboration

§ Executive Challenges request ideas toaddress specific issues

§ Subject focused sub hubs ensures commitment and energy

§ Linkage to prototyping/validation programs (BizTech & TAP) and other resources

§ Innovator’s Awards for implemented ideas

http://ideas.tap.ibm.com/i_dir/ihubidea.nsf/25

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Technology Adoption Program (TAP)

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Social Media & Innovation

Innovation process: Technology Adoption Program distribution channel for innovations

production

IBM

enables the route to market

120,000+ early adopters2200+ innovators

products offerings

concepts & ideas

hundreds of

offeringsEnable

innovatorsMeasure

valueEngage the community

Technology

Adoption Program

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Hard to find the right person, the right information, the right tool

FACES a faster, more intelligent people search About 14000 visits a month

EXPERTISE LOCATOREmployees can share Areas of expertise 10,000 logins, over 100 experts contacted by end users

ANSWERS Grassroots : people can ask questions, find and provide answers Approximately 8000 users per month

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Collaboration in 1000’s of communities ~ Innovation

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© 2011 IBM Corporation

CommunitiesIBM hosts over 85,177 online communities, each with shared resources and discussions. More than 38,422 are private [restricted] communities.

BlogsIBM’s blogging platforms host 42,929 blogs, 303,296 entries with 106,736 users and 84,439 tags.

BookmarksIBM’s internal social bookmarking system has 1,370,336 total bookmarks with 3,908,271 tags and with 76% of them publicly shared.

ActivitiesIBM’s internal Activities service contains 259,013 unique activities with 4,169,728 entries and with 556,429 registered, 'distinct', members.

ProfilesIBM’s internal Profiles hold over 635,000 entries* & serves over 4 million searches per month. It’s the hub of user requests & all applications authentication for IBM.

Data updated: March 1st, 2012

IBM Connections is already at work in IBM

FilesIBM’s internal social file sharing & storage service contains 581,081 files, shared 1,501,706 times with 338,903 files added to folders [collections].

WikisIBM’s internal Connections Wiki platform hosts 672,968 pages viewed 42,993,500 times.

(* employees & contractors)

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© 2012 IBM Corporation

Expanding our Innovation Eco System - outside the firewall

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33 Credits: http://www.slideshare.net/andypiper

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378,000+ (*including Alumni)

39,000+ users, 500+ IBM groups(65% outside the US)

80+ accounts using “IBM” in the name(25% from outside the US) – over 3,000 IBMers on Twitter200+ IBM channels

75,000+

100,000 IBMers collaborating with 200,000 non-IBMers

166 communities, 200+ blogs, 5000+ profiles

Social Media Outside the IBM Firewall examples ( incl Alumni)

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Social Media & Innovation

We use social media to distribute content and get into dialogue

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But we can also use social media to understand what's going on – Social Analytics

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© 2012 IBM Corporation

Social Media & Innovation

§ Promising software programs in research not yet commercialized.

§ Outside companies and developers contribute valuable ideas about bringing them to market.

§ First-cut versions of research technology available for free trial attracting thousands of early adopters, innovators, and entrepreneurs to site.

§ 40% of technologies on the site graduate into IBM products or industry standards.

AlphaWorks - part of IBM developerWorks- Speeding IBM Emerging Technologies to the outside early-adopter community

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Social Media & Innovation

alphaworks is collaborative!

Not all nodes are represented, e.g.

Developers are not in the diagram

IBM Research

TechnologyPrototype

Market/Community

SWG

TechnologyPrototype

End-user

User feedback

End-userevaluation

Product

Brand

Information

IBM Software

Alphaworks feedback?

IBM Dev Labs

IBM

AlphaworksSoftware

OpenSources

IBM Open/sourceSoftware

Coordination

Open sourcelicence

DevelopersWorkssupport

AWS infos

AWS Software

Tangible transfer Intangible transfer

developerWorks

Academic Initiative

Lab Tours

GR Efforts PR Efforts

Conferences

alphaBrief

Promotion

Legal&Naming

alphaworks

External to IBM

Internal to IBM

Externalto IBM

Internalto IBM

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Social Media & Innovation

Links:

IBM Social Business: http://www-01.ibm.com/software/collaboration/social/business/

IBM Research Center for Social Business: http://www.research.ibm.com/social/index.shtml

IBM Lotus Greenhouse: https://greenhouse.lotus.com

IBM Jams: https://www.collaborationjam.com/

Alphaworks: http://www.alphaworks.ibm.com/

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Questions?