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® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software Singapore Digital Media Festival – October 2008

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Page 1: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

®

© 2008 IBM Corporation

IBM Software Group

Social Networks: Making Business Sense of out themSandeep BakhshiASEAN Business Unit Executive, Lotus SoftwareSingapore Digital Media Festival – October 2008

Page 2: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation2

Topics

What is Web 2.0?

Why should you care about Web 2.0?

IBM customer examples

New business models

Summary

Page 3: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation3

Disruptive Innovation:

The Internet, the Web, e-business

Page 4: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation4

The impact of the internet – as a disruptive technology - has already transformed our world

Email: Over 40 Billion sent daily Texting: Number sent and received every

day exceeds the total population of the planet

Google: Nearing 100 Billion searches per month

Revenues for iconic Web 1.0 Companies - Amazon.com $10.7 Billion in 2006- E-Bay.com $5.97 Billion in 2006

Digital Content: In 2006, amount created was about 3 Million times more than all the information that is in all the books ever written

e-Commerce: In 2006, more than 85% of the world’s online population (875 Million consumers) has used the Internet to make a purchase—online shopping market up 40% in the past two years

Page 5: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation5

Web 2.0

Virtual Worlds

SOA

Mashups

Mobile Devices

Social Software

Blogs

Folksonomy

Web Analytics

Software as a Service

Wikis

Mobile 2.0

3D Internet

Telepresence

Web 2.0, 3DI & more…..The next major wave of disruptive change…

Wisdom of crowds

Micro-blogging

Semantic Web

Micro-payments

Page 6: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation6

This new wave of Web 2.0 disruptive technology is transforming all aspects of our consumer experience

MySpace: over 175 Million members; over 67 Billion page views per month

Facebook: over 75 Million active members; over 15 Billion page views per month

YouTube: Tracks around 16 billion page views per month

Second Life: 9.5 Million registrations (logins created); 91,000 premium users (users who pay for land)

Twitter – Not just for consumers any more: The Los Angeles Fire Department USA presidential candidates Ron Paul, John

Edwards, Barack Obama

In China, there are 100,000 new broadband users everyday

Mobile devices outnumber desktop computers by a factor of two

Page 7: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation7

What is Web 2.0?

“Web 2.0 is a set of economic, social, and technology trends that collectively form the basis for the next generation of the Internet … characterized by user participation, openness, and network effects.”

—O’Reilly Radar

Pandora/RhapsodyNapster

MySpace/FacebookGeoCities

FlickrOfoto

Google MapsMapQuest

BlogsHome pages

Del.icio.usYahoo!

WikipediaBritannica Online

Web 2.0Web 1.0 Web 2.0 is about …

PEOPLESocial computingConnect to expertise

PLATFORMWeb as a delivery platform

Access services online

APPLICATION DEVELOPMENTChange the economics of application development

Page 8: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation8

Licensed under Creative CommonsAttribution Non-Commercial-ShareAlike 2.0 GermanyLudwig Gatzke

There is a lot of Web 2.0 out there….

• Blabberize, • BillMonk, • Blippr• FoodFeed, • Yay Hooray, • Denodo• Greedy or Needy, • Predicity, • YubNub, • Savy Auntie• Fileswap.com, • Plurk.com, • BarbieGirls, • Profilactic.com

Source: Robert Luhn in August PC World “Web 2.0’s Most Ridiculous Sites”

Page 9: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation 9

Seriously - what’s it about?

Tim O’Rielly “Systems that get better the more people use them”

Enterprise 2.0 is really about corporate transformationCan involve Web 2.0 technologies and social computingPredicated on corporate change

Page 10: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation

Source: Forrester as reported by: http://www.micropersuasion.com/2006/03/institutional_p.html

What is Social Computing

Social computing refers to the use of social software, a growing trend in IT usage of tools that support social interaction and communication.

Social software enables people to rendezvous, connect or collaborate through computer-mediated communication and to form online communities.

Page 11: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation

Where are the users?All ages,

All demographics,

World wide

How many of us know what social networking is?

Synovate – Sept 2008 survey of 13000 adults aged 18-65 in 17 (developed world) markets

– 42% according to Synovate

• Goes up as you survey younger people.

• Approx a third report that they’re losing interest.

• Authors point out that there appears to be a healthy respect for online vs physical worlds and maintaining

a balance.

Page 12: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation 12

What are they doing….

As reported by Jon Brodkin, Network World, 07/10/2008

Gartner reports that most of us using Web 2.0 and social computing are: – “motivated by personal needs and a desire for entertainment, rather than

business and practical objectives.”– We share: photos, activities, opinions, …. “have fun”

User-Generated Content

Published Content

Collective Intelligence

Page 13: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation13

Why should you care about Web 2.0?

You can measure the ROI of Web 2.0 across a variety of sources. Here’s an example of how IBM benefited from Web 2.0 with its Enterprise Tagging Services (ETS), which:

Allows users to tag pages in the IBM intranet Is integrated with enterprise search to significantly reduce search time

ROI

Improved growth through innovation

Broadened the collective intelligence to drive innovation

Improved efficiency

Cut search time by an average of 12 seconds

With 286,584 search visits per week, saved

955 hours

At US$100 per hour,

40 hours per week

and 48 weeks per year,

gained US$4.6 million in productivity

Cost avoidance

Avoided US$2.4 million

in costs through the reusability of the ETS widget

Increased empowerment of key resources

Enabled better use of key experts and content across the organization

Uncovered information with an estimated value of US$500,000 per year

Page 14: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation14

• User-driven adoption

• Value on demand• Low cost of entry• Public

infrastructure

Software as aSERVICE

Service, not software

COMMUNITYmechanisms • Recommendation

s• Social networking

features• Tagging• User comments• Community rights

management

Users add value

The three software patterns driving Web 2.0

SIMPLEuser interface and dataservices

• Responsive UIs (AJAX)• Feeds (Atom, RSS)• Simple extensions• Mashups (REST APIs)

Easy to use, easy to remix

Web 2.0

Page 15: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation15

Retail: more trustworthy transactionsReviews and ratings

Consumer Reviews

Trust: Reviewer history

Offering preview includes ratings

Page 16: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation16

Retail: more trustworthy transactionseBay reputation-based selling

Seller reputation is founded on buyer reputations

Page 17: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation17

Entertainment: more effective personalizationRecommendations – based on your ratings

Movies are recommended based on what you’ve enjoyed in the past

Page 18: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation18

Government: leverage the wisdom of crowds Collect and refine ideas in real time

“Jams” are used to conduct electronic brainstorming sessions with a large audience

Page 19: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation19

Government: leverage the wisdom of crowdsCommunity patent review

The public can see patent applications before they are finalized, giving a chance to comment on claims or submit prior art

Page 20: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation20

Finance: leverage the wisdom of crowds Tax guide emerging from the “wisdom of crowds”

This tax guide is a wiki, written by volunteer experts

Page 21: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation21

Real Estate: greater transparency through data mashups

This example is a “mashup” of data from local deed registrars and real estate listings

Page 22: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation22

Government: expose data for greater impact Mapping avian flu data

Declan Butler (a reporter for Nature) is mapping H5N1 news reports onto Google Earth and posting them on his blog

Page 23: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation23

IBM social networking at work at Cardiff University

Improves research agenda with IBM Lotus Connections software

Business challenge Improve overall employee productivity by allowing faculty to tap into

the vast amount of knowledge and skills across the university

Solution An enterprise-wide directory service based on IBM Lotus Connections

software that:– Enables researchers and staff to search for skills, projects, teams

and knowledge throughout the institution– Allows users to locate information quickly, interact with people in

realtime and advance research projects through collaboration

Benefits Increased collaboration across previously isolated schools and faculties Improved the university experience of faculty and students Enhanced teaching methods and materials Increased efficiencies in research projects and grant management

Page 24: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation24

IBM Mashup Center at work at Boeing

Purpose: enable U.S. Federal Aviation Administration (FAA) officials to quickly identify the nearest airport that can safely handle an incoming aircraft for emergency response

Boeing Air Traffic Management

Created by IBM and Boeing to demonstrate next-generation aviation capabilities

Draws from existing data and systems to enable officials to react to unexpected events

Built within three weeks and delivered to the FAA, the U.S. Department of Defense and the U.S. Department of Homeland Security

“As an established innovator, Boeing believes in the power of Web 2.0 and embraces it not only for collaborative work, but also for the heavy lifting of enterprise planning and execution. IBM Mashup Center is playing a key role in our visionary approach to strategic asset management. It's critical to know where your major assets are and how to use them at any given time, situation or condition.”

— Paul Comitz, Boeing, IBM press release, June 5, 2008

Page 25: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation25

Entertainment: communication through popular mediaPublic contribution of photos and videos

Most news channels (and a few others) are seeking contributions from the general public, in the style of YouTube

Page 26: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation26

Advertising: communication through popular mediaDorito’s social marketing experiment

Superbowl commercials were produced by amateurs at very low cost

Page 27: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation27

Collaboration 2.0 available to 500K of us

• Profile: 515k profiles on bluepages; 6.4M+ searches per week

• Communities: 1,800+ online communities w/147k members and 1M+ messages

• WikiCentral: 25K+ wikis with 320K+ unique readers

• BlogCentral: 62k users; 260k entries; 30k tags

• Dogear: 580k bookmarks; 1.4M tags; 20k users

• Activities: 50k activities, 425k entries; 80K users

• Instant Messaging: 4M+ per day

Usage

• Search satisfaction has increased by 50% with a productivity driven savings of $4.5M per year

• $700K savings per month in reduced travel

• Significant reduction in phonemail, email server costs

Social Software in Action at IBM

Return on Investment

Page 28: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation

Gartner Hype Curve

Source: Gartner

Page 29: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation

Gartner Years to Mainstream Adoption

Page 30: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation30

Why should you care about Web 2.0? (continued)

Companies are investing in Web 2.0 to increase their competitive advantage

Source: McKinsey Quarterly Survey on Web 2.0, July 2008.

1. Forrester, Global Enterprise Web 2.0 Market Forecast: 2007 To 2013, G. Oliver Young, April 21, 2008. 2 Gartner, Hype Cycle for Emerging Technologies, July 2008.3 Economist Intelligence Unit Survey, January 2007.

Web 2.0 adoption trends

21%

24% 24% 23%

27%

34% 33% 32%

29% 28%

Blogs RSS Wikis Podcasts Social networking

2007 2008

Forrester projects significant adoption of Web 2.0, saying that enterprise spending on Web 2.0 is expected to grow from US$764 million in 2008 to US$4.6 billion in 2013.1

Gartner ranks Web 2.0 as a transformational trend in the short term—less than two years.2

Twenty-two percent of organizations surveyed are using mashups now. An additional 42 percent plan to use mashups within two years.3

Page 31: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation31

Web 2.0 opportunities exist in three key areas…

Capitalizing on New Markets & Business Models

Getting Closer to Your Markets & Customers

Creating New Capabilities

Page 32: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation32

… With 8 new rules to consider

Capitalizing on New Markets & Business Models

Getting Closer to Your Markets & Customers

Creating New Capabilities

4. Trust the network – it really does know more than you

5. Embrace your customers

6. Use social networks to create solutions

7. Embed flexibility in business models and information systems

8. Foster rapid, collaborative innovation in the enterprise

1. Grab and monetize the Long Tail of demand

2. Get ready - Your customers value digital content

3. Jump in - Virtual worlds are real business

Page 33: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation33

Revenues from New Business Models Growing 6X Revenues from Traditional Models

Mobile Video

User Content

Handheld Media

Broadband Entertainment

Page 34: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation34

Content Hyper-syndicationModel with secure, professional content available online and on standard devices

Source: IBM Institute for Business Value (IBV)

Four Business Models 2006—2010

Four business models are key to growth for the next 3-5 years; they span from the traditional to highly disruptive for media players

Walled Communities

Model integrates user- and community-content within a “walled” access environment

Traditional Media BusinessModel relies on professional, branded content within a “walled” access environment; incumbents have legacy position

Open Proprietary Distribution and Device Platforms

New Platform Aggregation

Model relies on user-generated content and open distribution platforms; most disruptive for media industry

User/ Community Contribution

Produced by Professionals

ContentSource

Page 35: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation35

Hyper Content SyndicationMy BBC Playerabc.comWarner Bros on BitTorrentAmazon.com Video Store World of Warcraft

Source: IBM Institute for Business Value (IBV)

Market Examples

Popular names lead each model. Position today, however, may not be the same as tomorrow

Walled Communities

Apple iLife GarageBandsApple Pod/Vid-castsNTT User-run CommunitiesComcast/Current TV

Traditional MediaBBCWarner Bros.ABCEMI Group

Open Proprietary Distribution and Device Platforms

New Platform AggregationSecond LifeGoogle/YouTubeSellABand.comYahoo! 9sMySpace (NewsCorp)Grouper (Sony)

User/ Community Contribution

Produced by Professionals

ContentSource

NTT Comcast BSkyB

Page 36: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation36

Source: IBM Institute for Business Value (IBV)

Opportunities for Media Cos.

Based on their starting position, content owners and traditional media distributors each have two choices

Open Proprietary Distribution and Device Platforms

User/ Community Contribution

Produced by Professionals

ContentSource

1Become New Platform Aggregator

2 Take Brands “Open”

2Reinvent Walled Experiences

Content Owner OptionsMedia Distributor Options

Traditional Media Company Starting Position

Page 37: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation37

ContentSource

Source: IBM Institute for Business Value (IBV)

New Platform Aggregation

All media companies may look to the new corners of innovation; buy vs. build most likely to speed participation

New platform aggregation offers avenue for growth and first-hand

learning, but also may represent, in its extreme form, an abandonment of historical

business models

Open Proprietary Distribution and Device Platforms

User/ Community Contribution

Produced by Professionals

1

New Platform

Aggregation

Page 38: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation38

ContentSource

Source: IBM Institute for Business Value (IBV)

Incumbent Movements

Players may participate in “white space,” their strength is in adapting, not abandoning, current assets. Doing nothing, not an option

Open Proprietary Distribution and Device Platforms

Dis

trib

uto

rs BSkyBNTTComcast

BBCABCWarner Bros

My BBC Playerabc.comWarner Bros on

Bittorrent

Content Owners

Apple iLife GarageBandsApple Pod/Vid-castsNTT Community-run

NetworkComcast/Current TV

User Advertising and Content

User/ Community Contribution

Produced by Professionals

2

2

Page 39: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation39

What’s Next…. Web 3.0???

While Web 2.0 was based on Ajax, and php scripting languages….. Web 3.0 will be “applications that are pieced together” - with the characteristics that the apps are relatively small, the data is in the cloud, the apps can run on any device (PC or mobile), the apps are very fast and very customizable, and are distributed virally (social networks, email, etc

See Wikipedia for an evolving definition…..

Page 40: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation40

Embrace your customers

Ease of access reduces relationship barrier and creates new opportunities to: change the way enterprises connect build customer relationships

Build rich communities of participation (crowdsourcing) by opening up the dialogue and encouraging discussion around your own products and services Improves the overall quality Creates better products and services Creates better brand experience Lowered costs to serve new customers

Source: www.wikipedia.com

Our analysis identified 55% of sampled large enterprises and 45% of start-ups focused on creating Value by embracing customers

Page 41: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation41

Embrace your customersExample: Intuit – Consumer product, professional & early adopter community users helping each other

Page 42: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation42

Embrace your customersExample: Patientslikeme – Patients helping each other & the medical community

For Patients: Provides a specialized social network

forum for patients that suffer from life altering diseases

Patients sharing their information, knowledge and experience & offering each other support

Consolidates personal accounts and tracks progress

For Doctors, Researchers, Pharma, Medical companies:

Provides Researchers insight & access to patient communities

Provides Doctors insight to how peers are approaching a particular ailment and medication (e.g., . distribution of dosage range, side effect frequencies)

Sources: company website, http://money.cnn.com/magazines/business2/business2_archive/2007/09/01/100169862/index.htm

Page 43: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation43

Use social networks to create solutions

Innovative technologies are opening up an entirely new dimension to integrating an ecosystem – a long establish solution strategy

Solutions require better integration across business partners to meet client needs.

Social networks, enabled by innovative technologies, are critical components for creating these web-based solutions driving value in key areas: Building loyalty, trust and camaraderie in an increasingly mobile and global

marketplace Fostering innovative discussion and support among online communities with

committed participants, expert users and early adopters Creating advocates for the company in the increasingly transparent world of the

social web, where information and misinformation disperses instantaneously.

Our analysis identified 55% of sampled large enterprises and 37% of start-ups are exploring Value 2.0 through social networks & corresponding ecosystems

Page 44: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation44

The United Nation’s (UN) World Urban Forum (WUF) and government of Canada engaged IBM to sponsor HabitatJam to help set the agenda for WUF3, the biannual conference on urban sustainability.

HabitatJam – the largest brainstorming ever on urban sustainability 39,000 participants from 191 countries Delegates, Politicans, Academics, Aid Organizations, & Slum

Dwellers (whose lives would ultimately be impacted)

On-the-ground events – Jam cafes – brought together thousands of slum dwellers (people who had never seen a computer): Kibera, Kenya: Hundreds of slum dwellers lined up for hours

to have their messages typed into a computer Delhi, India: 10,000+ people gathered in slums to express

their views and discuss the problems of the world's cities. Similar events were held in Russia, the Congo, Colombia,

Cameroon, Brazil, Uruguay, Peru and Bangladesh.

Foster rapid, collaborative innovation in the enterpriseExample: IBM Jams: Collaborative Innovation

Page 45: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation45Enterprise social software. Unleash the power of us. 45

Web 2.0 is Us(ing)/Us

Page 46: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation46

BACKUPS

Page 47: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation47

Why IBM?

IBM is a leader in Web 2.0, helping organizations realize better business outcomes

Web 2.0 unlocks the value of participation associated with people, platform and application development

Web 2.0

IBM is particularly well positioned to address the key pillars of Web 2.0

People—IBM leads in enterprise social software that connects experts and makes your teams more agile, with the security and strength you expect from IBM.

Application development—IBM delivers the Web 2.0 technologies needed to build Web 2.0 solutions, whether they’re enterprise applications or situational mashups.

Platform—IBM’s tools, middleware and security solutions enable you to use the Web as a delivery platform—virtually anytime, anywhere—extending your organization’s reach.

IBM supports the spectrum of delivery models

Software as a service Hosted Appliance On premise

Page 48: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation48

Why IBM? (continued)

What analysts are saying

“IBM was the clear winner across the board.”4

“What IBM is offering here … is a full suite of products designed to address the needs of developers, while providing a front-end, self-service mashup composition product for business users.”5

4 Mike Gotta, E2.0 Conference: Social Computing Platforms, June 19, 2008, Collaborative Thinking Blog.5 Application Development Trends, IBM's Mashup Play, John K. Waters, June 9, 2008, http://www.adtmag.com/article.aspx?id=22747

Page 49: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation49

People—connect, collaborate and innovate

IBM social networking solutions—harnessing the power of participation

Increased collaboration for better business outcomes

Why social computing? Capture and preserve tacit information Leverage information more effectively Discover and unlock expertise Coordinate ad hoc activities and reuse what

works

What IBM offers IBM Lotus® Connections software

- Dogear- Communities- Profiles- Blogs- Activities

IBM Lotus Quickr™ software IBM Lotus Sametime® software IBM WebSphere® Commerce software

Page 50: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation50

Web 2.0 enterprise applications from IBM

Connect

IBM WebSphere MQ 7.0 IBM WebSphere

DataPower® SOA appliances

Web 2.0 SupportPac® for CICS®

Web 2.0 Starter Toolkit for DB2®

Build

IBM Lotus Forms IBM Rational® Team

Concert IBM Rational Software

Architect IBM Rational AppScan®

IBM Rational Tester for SOA Quality

Deploy

IBM Lotus Expeditor IBM WebSphere Portal IBM WebSphere

Application Server Feature Pack for Web 2.0

Manage

IBM Tivoli® Composite Application Manager

IBM Tivoli Federated Identity Manager

IBM Tivoli Security Policy Manager

For example, build Web 2.0 solutions using simple Web 2.0–based technologies

IBM Rational Team Concert softwareHold collaborative debugging sessions in realtime around the world

IBM Rational AppScan softwareLeverage scalable individual and

enterprise solutions for assessing and remediating security vulnerabilities

Page 51: ® © 2008 IBM Corporation IBM Software Group Social Networks: Making Business Sense of out them Sandeep Bakhshi ASEAN Business Unit Executive, Lotus Software

IBM Software Group

© 2008 IBM Corporation51

Application development—simple to build, quick to remix, easy to extend

Web 2.0 application development from IBM—deliver Web 2.0 solutions with Web 2.0 technologies

51

Enterprise applications Mashups and situational applications

A lightweight Web application created by combining information or capabilities from more than one existing source to deliver new functions and insights

Rapid creation—in days, not months Reuse of existing capabilities to deliver

new functionality and fresh insight Limited to no technical skills required Often a mix of internal and external

sources

Leverage and extend existing infrastructure

Access applications from the office, on the road or at home

Build Web 2.0 solutions using simple Web 2.0 technologies

Extend your enterprise and improve security with IBM

CONNECT

BUILD

MANAGE

DEPLOY

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The Web as a delivery platform—erase boundaries, extend value networks

Access services anytime, anywhere—across your network of partners, customers, suppliers and employees

Bluehouse

Share content Discover expertise Communicate and hold

meetings Represent ideas

visually Assemble business

Web sites

IBM Lotus Sametime Unyte®

Engage in anytime, anywhere Web conferencing in minutes

Share presentations Use the solution

24x7x365 Benefit from security-rich

128-bit SSL encryption

WebSphere Portal

Deploy rich, browser-based applications

Gain enterprise-grade security and governance

Benefit from broad support of Web 2.0 services and industry standards

Lotus Expeditor

Provide offline and online access to business mashups and composite applications with the client integration framework

Support laptops, desktops, kiosks and mobile device clients

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Legal information

© Copyright IBM Corporation 2008

IBM CorporationIBM Software GroupRoute 100Somers, NY 10589U.S.A.

Produced in the United States of AmericaSeptember 2008All Rights Reserved

IBM, the IBM logo, and ibm.com are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. These and other IBM trademarked terms are marked on their first occurrence in this information with the appropriate symbol (® or ™), indicating U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at ibm.com/legal/copytrade.shtml

Microsoft is a trademark of Microsoft Corporation in the United States, other countries, or both.

Java and all Java-based trademarks and logos are trademarks of Sun Microsystems, Inc. in the United States, other countries, or both

Other company, product, or service names may be trademarks or service marks of others.

The information contained in this publication is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this publication, it is provided “as is” without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this publication or any other materials. Nothing contained in this publication is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software.

References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates.

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While traditional revenues dominate today, growth will be found in new, more open spaces and communities

Open Proprietary Distribution and Device Platforms

User/ Community Contribution

Produced by Professionals

ContentSource

Size indicates revenue size 2006

Traditional Media Business2006 Size: $277CAGR: 5%

Content Hyper Syndication2006 Size: $9BCAGR: 33%

New Platform Aggregation2006 Size: $29BCAGR: 16%

Walled Communities2006 Size: $166B

CAGR: 10% Consensus forecast revenue 2010

Aggressive forecast revenue 2010

2010 Business Models

Source: Original data sources include PricewaterhouseCoopers, “Entertainment and Media Outlook 2006—2010,” June 2006; Datamonitor, “Broadcast TV to Mobile,” mobile advertising from Informa “Advertising Services: generating revenue through subsidised content’” September 2006; Veronis, Suhler and Stevenson, “Communications Industry Forecast,” May, 2005 and industry interviews

Notes: Traditional Media includes revenue from theatrical, video sell-thru and rental, physical music, TV advertising, syndication and licensing, retail video gaming and VOD/PPV via MSO/Telco/DBS; Content Hyper Syndication includes revenue digital music, film rentals and streaming, interactive TV promotions, and gaming online; New Platform Aggregation includes revenue from online advertising; Walled Communities includes TV basic and premium subscriptions as well as mobile music, television, ringtones, gaming and other content

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Let Web 2.0 work for you

Start your pilots Web 2.0 can be a low-risk, high-reward initiative—

with immediate payback

Build consensus At the start, organizational alignment is more

important than technology decisions

Measure the results Web 2.0 is new and exciting, but at the end of the

day, you still expect results

55

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Helpful resources

Web 2.0 Goes to Work—ibm.com/web20

Lotus Greenhouse—greenhouse.lotus.com/home/login.jsp

Organizational Effectiveness—ibm.com/cio/empower

IBM Web 2.0 Tell Your Boss kit—ibm.com/developerworks/lotus/kits/d-ls-web20kit2

IBM Global CEO Study 2008—ibm.com/services/us/gbs/bus/html/ceostudy2008.html

IBM Global Human Capital Study 2008—ibm.com/services/us/gbs/bus/html/2008ghcs.html

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Web 2.0 Success according to Gartner

Web 2.0 in the enterprise:

Six keys to success Six mistakes to avoid

1. Start small and cultivate success.

2. Make it open and easy to use and reuse.

3. Expose connections and let users create structure, share bookmarks, use tags and so forth.

4. Links to e-mail, syndication.

5. Identify the right context.

6. Plan for growth.

1. Don't ignore accountability and responsibility.

2. Don't think of Web 2.0 as a passing fad.

3. Don't try to solve all with Web 2.0.

4. Build it with a business purpose in mind.

5. Don't overengineer — build for adoption.

6. Don't set too many restrictions.

SOURCE: GARTNER

Published by Network World, Jon Brodkin, 09/21/2007