© 2011 IBM Corporation Get Social. Do Business.

© 2011 IBM Corporation The forces driving a smarter planet are having a remarkable impact on how people interact Instrumented smartphone shipments will outpace PCs by 2012 Interconnected social networking accounts for 22% of all online time Intelligent the social data analytics opportunity will grow to 1 Zettabyte by 2011

© 2011 IBM Corporation As a result, people get things done in entirely new ways 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.

© 2011 IBM Corporation 95% of standout organizations will focus more on getting closer to the customer over the next 5 years. Creativity is viewed as the #1 most important leadership quality for the next 5 years. Embracing trends in how people interact can help organizations address top CEO priorities 81% of CEOs will focus more on their people's skills in the next 5 years. According to the 2010 IBM CEO Study:

© 2011 IBM Corporation 66% of CIOs from top-performing organizations see internal communication and collaboration as key to innovation 74% of CIOs see collaboration and communication as a key driver in transforming their organizations CIOs are also reporting a shift in investment consistent with these trends Nearly 3 times as many CIOs in top- performing organizations view Social Network Analysis as a top priority According to the 2011 IBM CIO Study:

© 2011 IBM Corporation They activate networks of people that apply relevant content and expertise to improve and accelerate how work gets done, delivering unprecedented return for the time invested. Social Businesses have distinct characteristics that distinguish them from other organizations At their core, they are... Engaged deeply connecting people to be involved in productive, efficient ways Transparent providing line of sight across traditional boundaries and better aligning actions to needs Nimble speeding up business with insight to anticipate and address evolving opportunities

© 2011 IBM Corporation 90% of respondents report measurable business benefits from Web 2.0 tools, including better access to knowledge, lower costs of doing business, and higher revenues. – McKinsey Global Survey 2010 Standout organizations are 57% more likely to allow their people to use social and collaborative tools. – IBM CHRO Study 2010 Social Business benefits are real and are helping drive sustainable differentiation

© 2011 IBM Corporation Business functions are redefined in a Social Business Marketing Customer Service Product Development Human Resources

© 2011 IBM Corporation Marketing

© 2011 IBM Corporation Are you ready? To create a personal experience for customers requires doing more listening…and being nimble to respond quickly to customer needs IBM CEO Study 2010 How customer expectations will change in the next 5 years % of CEOs answering “To a large / very large extent” 82% 70% 69% Better understanding of needs New or different services More collaboration, info sharing

© 2011 IBM Corporation The benefits of Social Business to marketing are real Realized benefit - median improvement % Increase effectiveness of awareness (realized by 52% of respondents) Increased effectiveness of conversion (realized by 52% of respondents) Increase revenue (realized by 18% of respondents) (*) “The rise of the networked enterprise. Web 2.0 finds its payday” – McKinsey Global Survey Results, 2010

© 2011 IBM Corporation *as projected by IBM BVA client Background Regional HealthCare Payer (300,000 insured members) Business challenge: “Personalized sale to each and every customer” Return on Investment: Consider the ROI from Marketing at HealthCo Social Business in Action

© 2011 IBM Corporation For HSBC being a Social Business produces revenue results by listening to customers 13 3 By utilizing a highly scalable IBM Web platform HSBC was able to deliver on its brand promise and meet high performance demands. The platform allowed HSBC to: ● Realize a 35% improvement in marketing campaign revenue ● Increase customer loyalty through advanced personalization ● Increase time-to-market by deploying a consistent online approach to all HSBC channels Need: ● Deliver personalized content to over 50 million customers in 40 countries ● Test and enable go-to- market with best offers Results:

© 2011 IBM Corporation 14 Customer Service

© 2011 IBM Corporation Are you ready? Customer Service is key to the success of any business. CEOs agree… Source: IBV CEO Study, % of standout organizations will focus more on “getting closer to the customer” over the next 5 years, 14% more likely than their peers. – IBM CEO Study 2010 How can becoming a Social Business help you meet this goal?

© 2011 IBM Corporation Realized benefit - median improvement % Increase speed of access to internal experts (realized by 52% of respondents) Reduce external communications expense (realized by 53% of respondents) Increase speed of access to internal knowledge (realized by 77% of respondents) (*) “The rise of the networked enterprise. Web 2.0 finds its payday” – McKinsey Global Survey Results, 2010 Value of Social Business for Customer Service

© 2011 IBM Corporation *as projected by IBM BVA client Background Regional Credit Union for public employees (50,000 members) Business challenge: “Move deep customer relationships to the Web” Return on Investment: Consider the Social Business ROI at FinanceCo Social Business in Action

© 2011 IBM Corporation 18 For Reliance Insurance, becoming a Social Business increased revenue by listening and delivering new product and services Results: Reduced time market of services and features by more than 50% Reduced costs of customer / agent service by 50%; saved millions (HOW MANY) of dollars in capital expenditures for branch and call center build-out Achieved 100 percent YOY average growth in new business premium (NBP) within four years, becoming #4 Need: Translate potential into new customers Connect channels, people, process and systems Develop right mix of products align with diverse customer needs "Our vision of self-service as a way to enhance our growth strategy has proven highly successful. With IBM’s technology, insight and continued support, we’re building the foundation for long-term market leadership." –C. Mohan, Chief Technology Officer, Reliance Insurance

© 2011 IBM Corporation Deeper, unique interaction with customers Integration with social media tools Increased customer loyalty and sales With IBM, Businesses have achieved… LinkLink to YouTube Video Customers and Business Partners are making the shift…

© 2011 IBM Corporation 20 Product Development

© 2011 IBM Corporation How will you harness innovation in your business? Are you ready? “to drive ideas and innovation throughout your business...” Source: IBM CEO Study, 2006 CEOs: Sources for Ideas and Innovation Business Partners Customers Consultants Competitors Associations AcademiaInternet, blogs, etc. Think tanks Other R&D (internal) Sales or service units Employees 5%25%45%25%5%45%

© 2011 IBM Corporation Realized benefit - median improvement % Increase speed of access to external experts (realized by 40% of respondents) Increase number of successful innovations (realized by 28% of respondents) Reduce time to market for new products/services (realized by 29% of respondents) (*) “The rise of the networked enterprise. Web 2.0 finds its payday” – McKinsey Global Survey Results, 2010 Value of Social Business for R&D and New Product Development

© 2011 IBM Corporation *as projected by IBM BVA client Background Global leader in food products (300,000 employees) Business challenge: “Beat competition with more on-target products” Return on Investment: Consider the Social Business ROI at CPG-Co Social Business in Action

© 2011 IBM Corporation 24 Results: Through the CEMEX Shift Platform value is realized... Agility and efficiency = collaboration between 7K staff in 50 countries Open and authentic culture = new products, faster and first global product, Ready-Mix Market growth = new markets for existing products, new products for existing markets …true innovation and transformation For CEMEX, becoming a Social Business allowed them to create a more agile and efficient organization Need: ● Encourage collaboration and improve productivity ● Build knowledge and experience ● Better serve customers ● be better prepared for future challenges

© 2011 IBM Corporation  New Product Innovation  Open Collaboration between 17K participants  Collaboration across 50 countries With IBM, CEMEX achieved… Listen to CEMEX story (YouTube link)link Gilberto Garcia, CEMEX Innovation Director, made the shift…

© 2011 IBM Corporation Human Resources

© 2011 IBM Corporation *IBM CHRO Study, 2010 Improving operational efficiency Expanding into new markets/geographies Developing new product/service offerings Today Three years 44% 64% 31% 44% 35% 48% “Our current stance is defensive to protect our profits under difficult economic circumstances; however, over the medium and long term, our agenda is geared toward global growth.” Director of Operations, United Kingdom HR leaders are shifting focus to driving innovation, growth and operational efficiency How will your workforce handle this shift ? Are you ready?

© 2011 IBM Corporation Realized benefit - median improvement % Increase speed of access to internal knowledge (realized by 77% of respondents) Reduce internal communications expense (realized by 60%) Increase speed of access to internal experts (realized by 52% of respondents) (*) “The rise of the networked enterprise. Web 2.0 finds its payday” – McKinsey Global Survey Results, 2010 Value of Social Business for HR and Talent Management

© 2011 IBM Corporation Background Large US electric utilities provider (14M customers) Business challenge: “Roll out new grid, while continuing to lower costs” Return on Investment: *as projected by IBM BVA client Consider the ROI from HR at UtilityCo Social Business in Action

© 2011 IBM Corporation For Sogeti, becoming a social business means rapidly developing and deploying skills Need: More closely align a spread out workforce Campaign: Sogeti TeamPark – a collaborative platform for employees Results: Driving real business results through TeamPak… Knits a single corporate culture = unites 200 locations in 14 countries Speeds market responsiveness = reduces search time for finding staff expertise, speeds the formation of consulting teams, and enter new markets more quickly “People are finding each other, creating new services. It could be an extremely valuable part of our culture." – Erik van Ommeren

© 2011 IBM Corporation Once you show success with social business, it's easy to expand to new opportunities “We started internally..but when employees realized the value, they asked us, isn't it possible to connect with customers and partners [as well]?” -- Markus Bentele Corporate CIO, Rheinmetall watch the video

© 2011 IBM Corporation C Can you show some part of the solution in my environment? What is my Social Business strategy? Social Business Thought Leadership What could or should we do with a social business solution? What does the social business experience look like for us? How can we financially justify our social business solution? Business Value Assessment Value Alignment Day in the Life Demo Business Case/ROI AGENDA Strategy Workshop Solution Workshop Start making social business real for your company

© 2011 IBM Corporation Next Steps:  Assess Your Organization: Take the IBM Collaboration AssessmentIBM Collaboration Assessment  Build a Roadmap: schedule a Social Business Agenda Workshop Get More Information. Whitepaper: The Social Business, Advent of a New AgeThe Social Business, Advent of a New Age Whitepaper: Forrester Study: Total Economic Impact of IBM Social CollaborationForrester Study: Total Economic Impact of IBM Social Collaboration Video: Business Value of Social SoftwareBusiness Value of Social Software Get Plugged In: Register with the IBM Reinventing Relationships Social Media AggregatorSocial Media Aggregator Follow us on Twitter: SocBizAgendaSocBizAgenda Start your Social Business transformation with IBM today…

© 2011 IBM Corporation