© 2007 IBM Corporation ® 1 Leveraging Social Software to Boost Innovation and Productivity Today October 2007

2 visualization Making sense out of “social software” Wiki’s Blogs Social Networks AJAX RSS Mash-ups Social Computing MySpace Tags Web 2.0 del.icio.us Flickr REST ATOM LinkedIn folksonomy Consumerization Digg bookmarking Communities Video Sharing Avatars Facebook Does any of this matter in ‘ real business ’ today???

3 Lotus Connections Buzz IBM to Sell Internet Social-Networking Software for Businesses, Jan 22, 2007 “Social-networking sites are not just for teenagers. They have business uses too” April 7 th, 2007 IBM's Social Networking Push, Jan 22, 2007 Playing Well with Others, June 18, 2007 CNBC, Jan 22, 2007

4 Agenda  Real Market Trends Driving Adoption  IBM Lotus Connections Software –Employee Scenario –Customer Scenario  Firms Getting Real Business Value - Today

5 Demand for Growth Drives Social Software Adoption  Survey show innovators grow faster  75% of CEOs indicated that collaboration was important to innovation  Top sources of innovation were business partners, employees and customers  To thrive in this environment companies must: –Weave communities into the product development process –Execute those innovative ideas quickly CEOs: sources of new ideas and innovation IBM Institute for Business Value. CEO Study %35%25%15%5% 15%25%35%45% Business partners Clients Consultants Competitors Associations, trade groups, conference boards Academia Internet, blogs, bulletin boards Think tanks Other Research and development (internal) Sales or service units Employees (general population)

6 Changing Demographics Drives a Need to Empower the New Generation of Business Leaders 19% of the entire American workforce holding executive, administrative and managerial positions will retire in the next five years Source: Beazley, et. al, Continuity Management, Mackay, Alan. “Mature Age Workers: Sustaining Out Future Labor Force.” An Ageless Workforce - Opportunities for Business' Symposium Conference Paper. August 27, Time to act quickly on aging.” The Japan Times Online. August 23, A. Paulli, “Pension systems and gradual retirement in Italy”, September 2000, p.17www.ageing.health.gov.au/ofoa/wllplan/aawpapers.htmwww.japantimes.co.jp/cgi-bin/getarticle.pl5?ed a1.htm, In the year 2000, there were more people receiving pensions in Italy than people working (22 versus 21 million) Within the next seven years, 33 million people in Japan (26% of the population) will be over 65 years old By 2016, the number of individuals aged in Australia is expected to almost double

7 Project-Based Work Drives a Need for Improved Activity Execution Across Professional Networks  Most work today involves dynamic processes being delivered by dispersed groups of people  Making business decisions involves more than just traditional IT applications – s / Faxes / Forms –Instant Message Chats –Web Pages, Documents, Presentations, or Spreadsheets –Web Conferences  People need simple ways to structure adhoc activities  People need to harvest best practice templates for the future Adapted from: *C. Hill, R. Yates, C. Jones, S. Kogan, Beyond predictable workflows: Enhancing productivity in artful business processes, IBM Systems Journal, Vol. 45, No. 4, 2006,

8 Changing Nature of Work Drives a Need to Connect Dispersed Workforces  Work environments are more complex –Matrixed organizations –Organization changes –Mergers/Acquisitions –Global companies –Telecommuting  Work is increasingly collaborative –Specialization –Ad hoc projects  Work demands more social capital “Today, more than 85 percent of a typical S&P 500 company’s market value is the result of intangible assets. For many companies, the bulk of these intangible assets is its people, its human capital. It is no longer what you own that counts but what you know…” —Craig Symons, Forrester Research, Inc.

9 “Indicate your level of trust in the following types of ads” % trust somewhat or completely Source: Forrester Research and Intelliseek Low Trust in Advertising Drives the Need to Connect Consumers

10 Need for Innovation Need for Execution Need to Empower Need to Connect If those are the needs, what’s the solution? Enterprise social software will be the biggest new workplace technology success story of this decade. 30% of enterprises will openly sponsor internal…social sharing spaces to help employees find others with similar interest, skills, backgrounds and experiences. - Gartner, “ Predicts 2007 – Big Changes Ahead in the High Performance Workplace”, Dec 5, 2006

11 Agenda  Real Market Trends Driving Adoption  IBM Lotus Connections Software –Employee Scenario –Customer Scenario  Firms Getting Real Business Value - Today

12 The Lotus software mission Empowering people to be more effective, responsive and innovative in the context of the work they do

13 Communities Blogs Dogear Activities Profiles Lotus Connections is social software for business that empowers you to be more innovative and helps you execute more quickly by using dynamic networks of coworkers, partners and customers. IBM Lotus Connections Software

14 Lotus Connections provides 5 key services Communities Create, find, join, and work with communities of people who share a common interest, responsibility, or area of expertise Blogs Use a weblog to present your idea and get feedback from others; learn from the expertise and experience of others who blog Dogear Save, organize and share bookmarks; discover bookmarks that have been qualified by others with similar interests & expertise Activities Organize your work, plan next steps, and easily tap your expanding professional network to help execute your everyday deliverables, faster Profiles Quickly find the people you need by searching across your organization using keywords that help identify expertise, current projects and responsibilities

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27 Using Lotus Connections from your daily tools Lotus Connections Services IBM Lotus Notes®IBM Lotus Sametime® IBM WebSphere® PortalWeb User Interface Web application Browser bookmarklets Powerful activity sidebar Community broadcasts Activities plug-in Portlet integrates any / all services into portal pages / sites Extensibility Feed readers Business card Mashups REST APIs

28 Agenda  Real Market Trends Driving Adoption  IBM Lotus Connections Software –Employee Scenario –Customer Scenario  Firms Getting Real Business Value - Today

29 Profile for registered customer Note: View is graphical design of customized interface accessing Lotus Connections services

30 Customer creates a profile Note: View is graphical design of customized interface accessing Lotus Connections services

31 Customer’s list of social bookmarks Note: View is graphical design of customized interface accessing Lotus Connections services

32 Customer’s blog Note: View is graphical design of customized interface accessing Lotus Connections services

33 Customer Communities Note: View is graphical design of customized interface accessing Lotus Connections services

34 Community for Specific Customer Segment Note: View is graphical design of customized interface accessing Lotus Connections services

35 Agenda  Real Market Trends Driving Adoption  IBM Lotus Connections –Employee Scenario –Customer Scenario  Firms Getting Real Business Value - Today

36 Lotus Connections is already at work in IBM Communities IBM Community Map hosts 700 communities. IBM Forums hold 36,000 entries. Blogs IBM’s BlogCentral hosts 27,300 weblogs (420 group blogs) with 62,000 entries and 60,000 comments, and 10,800 distinct tags. Dogear IBM’s internal Dogear system has 185,000 links from 3,425 users. One-third are intranet links and only 2.5% are private. Activities IBM’s internal Activities service has seen all content and usage statistics grow by 2.5x over the second half of 2006 to 10,000 activities, 60,000 entries and 32,000 users. Profiles IBM’s internal BluePages application provided the basis for Profiles. BluePages holds 475,000 profiles and serves 3.5 million searches per week. It is the hub of both user requests and all applications authentication for IBM.

37 Using Our Own Software to Build Communities Externally  With IBM Business Partners: Lotus Connections for Partners  With customers: Lotus Greenhouse

38 Lotus Connections Helps Deliver Expertise To Customers  No easy way to find, learn from and work with experts across the company  Re-inventing the wheel again and again Challenge  Improving the efficiency of key revenue generating employees  Increase customer satisfaction with faster service  Raising the reach and impact of their subject-matter experts Business Value Corporate white pages directory that allows employees to quickly find expertise in different markets, technology and financial services. Blogs, bookmarks and communities services are used so employees can share knowledge and get feedback from experts. Also, employees are using Activities to execute key deliverables faster Solution Global Financial Services Firm

39 Lotus Connections Drives Innovative Product Development In order to grow the business faster, they needed a faster way to develop and evaluate new services concepts and business models. Challenge  New services suggested by customer and partner communities  Accelerate the evaluation of new service concepts and therefore be faster to market  Grow market share and revenue through differentiated services and business models Business Value Deployed a Innovation Factory portal application that utilized the social software services of Lotus Connections to include communities of employees, customers and partners in the development and evaluation of new Telcom services. Solution Telecommunications Firm

40 Lotus Connections Improves Call Center Productivity Want to improve employee productivity by delivering the best user experience, increase operational excellence, and foster innovation between teams Challenge  Increase communication and coordination of projects between teams  Reduce time required to find the correct people with the right expertise  Improve collective intelligence of organization by sharing experiences Business Value Deployed enterprise wide implementation of the 5 social software services of Lotus Connections. Focused on enabling users to become more productive by working smarter and finding information – one key area was transfer of knowledge between engineering and call center staff. Solution Network and Communications Provider

41 Lotus Connections Saves Time on Post-disaster Reporting Disaster Response teams need the ability to associate soft documents with an event (e.g. Hurricanes), without having to go to a "fixed" location. This currently relies on individuals taking the time to navigate to a site and post the documents. Challenge  Capturing more data, easier than is being lost because it's only available for a very short duration.  Improved access to disaster information, with the expectation of capturing "all" documents and records  Easy integration into other applications (Microsoft Office) Business Value Deploying Activities (component of Lotus Connections) the Disaster Response Teams have the ability to save valuable time on post-disaster reporting capturing Solution Natural Disaster Recovery - Federal Agency

42 Why Select IBM for Your Social Software Initiative?  We have deep client experience with innovative users of social software technology in commercial enterprises and government agencies  We offer a comprehensive solution designed to address business needs using open standards technology  We’ve made a multi-million dollar commitment to ongoing social software solution development  Lotus Connections is built on WebSphere Application Server for scalability and supports REST/ATOM standards for easy extensibility  We have a long track record of thought leadership and business innovation

43 The Business Value of Social Software Crosses Multiple Dimensions Implementation Services SoftwareSoftware Benefit s MaintenanceMaintenance ROI TCOTCO HardwareHardware  Faster response to customer facing issues  Improved effectiveness of intra- and inter-company communications  Greater hit rate / faster time to value on innovations Improved Growth Through Innovation Faster Task Execution Improved Efficiency  Faster access to current information about people  Faster execution by ‘taking tasks out of the inbox’  Better reuse of best practices via activity templates Increased Empowerment of Key Resources  Reduced recruiting costs for expertise already available in the company  Reduced rework on overlapping projects  Improved compliance efforts via use of an integrated set of tools versus disparate internet web applications  Avoid duplicated IT infrastructure to support siloed collaboration technologies  Greater leverage of key experts across an organization  Improved retention of younger employees  Faster development of high performing resources Benefit Areas & Value Propositions

44 Learn how Lotus Connections can help Boost Innovation and Productivity for You Today … Latest product info, research, podcasts, and more