sales teams and value of social software (ibm)

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Corporate Technology Sales Teams and the Business Value of Social Software | December 2008 © Copyright IBM Corporation 2008, 2009. All rights reserved. Sales Teams and the Business Value of Social Software Gina Poole, Rawn Shah, Pam Nesbitt, Kate Ehrlich, Michael Muller, David Singer, Hardik Dave, David Millen, Michael Pazzaglini, Aaron Kim December 2008 Contact: [email protected]

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Describes the impact of using social processes or tasks within larger business processes to create a map of where social software provides business value. Executives like this because you are describing value in terms of processes that they know and understand, and simply replacing some (not all) steps with alternative or possibly better ways of doing things.This was also shared at the IBM Beyond Web 2.0 conference 2009.

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Page 1: Sales Teams And Value Of Social Software (IBM)

Corporate Technology

Sales Teams and the Business Value of Social Software | December 2008 © Copyright IBM Corporation 2008, 2009. All rights reserved.

Sales Teams and the Business Value of Social Software

Gina Poole, Rawn Shah, Pam Nesbitt, Kate Ehrlich, Michael Muller, David Singer, Hardik Dave, David Millen,Michael Pazzaglini, Aaron Kim

December 2008

Contact: [email protected]

Page 2: Sales Teams And Value Of Social Software (IBM)

Corporate Technology

© Copyright IBM Corporation 2008, 2009. All rights reserved.

2 Sales Teams and the Business Value of Social Software | December 2008

Agenda

I. Introduction

II. Background

III. Analysis

IV. Conclusions

Page 3: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

3 Sales Teams and the Business Value of Social Software | December 2008

I. Introduction

Page 4: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

4 Sales Teams and the Business Value of Social Software | December 2008

Study Description

● This is an express study to discover if it is possible to identify a correlation between social software usage and improved sales team effectiveness, given the metrics data sources available in IBM.

● This work aims to lay the groundwork for a more extensive study on the effectiveness of social software in improving collaboration, team productivity and operational efficiency in established Sales teams.

Page 5: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

5 Sales Teams and the Business Value of Social Software | December 2008

II. Background

Page 6: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

6 Sales Teams and the Business Value of Social Software | December 2008

The Need to Demonstrate the Business Value of Social Software

2007 Global Technology Outlook: Digital Communities Implication: IBM should use digital communities technologies to enhance teamwork and collaboration within IBM and to reinvent how we support our business partner and customer ecosystem.

Jeff Schick, VP Social Software, SWG Lotus We need to present IBM as a case study of a socially networked enterprise, and describe the benefits, value and ROI of social software adoption.

12/07 Corporate Technology Team Study, IBM as a Socially Networked Enterprise, Gina Poole

Recommended Action: Define a more strategic, systematic, and targeted approach to capture organizational business value by role, by task, and by business objective.

Page 7: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

7 Sales Teams and the Business Value of Social Software | December 2008

Why are Sales teams an appropriate population to study?

● Teams are where value is generated in IBM.

● Existing research shows high performance for sales teams correlates to a high degree of collaboration.

● Sales productivity is highly relevant to IBM’s success.

● SWG has a strong emphasis on improving the effectiveness of sales teams.

● A salesperson’s time is limited; 2007 study on sellers shows saving time for sellers leads to increased performance.

● Teams can benefit from both team- and individual-oriented social software, affecting a wider range of our software tooling.

Page 8: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

8 Sales Teams and the Business Value of Social Software | December 2008

2006 Study on Effective Collaboration within S&D Sales Teams

TeamPerfor-mance

TotalCAGR’01-’05

Total2004 Rev Growth

Total2005 RevGrowth

Low -2.7% -29% -34%

High 17.2% 6% 9%

… and has significantly better teamwork and performance

...with 15th attribute of denser Social Networks for collaboration

1 2

3

4

5

6

7

8

1010

11

12

13

2

3

4

5

7

8

9

Low Performance

High Performance

“Tu

rns-

to”

Net

wo

rk

High Performing Teams exhibit 14 key attributes of effective teamwork

• Intense focus on team results• High focus on client interests• Team members accessible and responsive to one

another• Diverse perspectives valued• Comfort with team members making decisions that affect

other members• Mutual accountability for executing against commitments

made • Shared strategy and purpose among team members• Team members’ roles and responsibilities well

understood• Open and honest discussion of problems• Appropriate team member assumes leadership tasks for

which one is best suited• Team communicates well on client activities/issues and

how to respond• Team members seek ideas/expertise from people

external to the team• Team members work together to ensure the client is

successful• Team members collaborated on a client service plan

From 2007 GlobalTechnology Outlook

Page 9: Sales Teams And Value Of Social Software (IBM)

Corporate Technology

© Copyright IBM Corporation 2008, 2009. All rights reserved.

9 Sales Teams and the Business Value of Social Software | December 2008

Driving Social Software use across IBM

...in 40 Countries

540+ Ambassadors... “Volunteer Army” of Social Software Ambassadors

IBMers helping other IBMers

Clinics – help individuals get started 1:1

“Lunch & Learn” sessions – education on to how to use social software

“Jumpstart” engagements - internal "consulting" to help enable team

Identify use cases, best practices, and tools – by role, by task

Make it easy to get started

Generate “buzz” & Share successes

Tap Early Adopters as grassroots evangelists

Drive change tops down, bottoms up, sideways…

encourage experimentation

Page 10: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

10 Sales Teams and the Business Value of Social Software | December 2008

The Collaboration ecosystemIntranet Internet / world

Public

spaces

Firewall

Clients

Partners

Experts

Employees

• Find and qualify

• Know, contribute network

• Discover information

• Develop trust, credibility

Social search

Clients and Partners

• Find and qualify

• Know, contribute, network

• Discover information

• Develop trust, credibility

Profiles

Public Conversations

Communities and Teams

Meetings

Business Processes

Experts

Experts

Social software adds value to

client engagements

Social media marketing generates leads and influences customers

Page 11: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

11 Sales Teams and the Business Value of Social Software | December 2008

III. Analysis

Page 12: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

12 Sales Teams and the Business Value of Social Software | December 2008

Fundamentals of Social Media MarketingListen to what the audience is saying about IBM products and services

Know and prioritize the key influencers and engage them as appropriate

Reach new prospects by distributing key assets into the social media sphere

Empower IBM customer advocates through communities and social media properties

Understand and communicate the impact of social media investments

Page 13: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

13 Sales Teams and the Business Value of Social Software | December 2008 13

Social Media Marketing Processes Aid Sales

Sales prospecting and customer-facing interactions

• Monitor online market conversations to develop valuable market feedback • Leverage information to identify new products, competitive weaknesses, sales opportunities

Key Marketing Constituents (Product Managers, Market Mgrs)

Working on sites beyond ibm.com IBMers & Clients sharing,communicating and collaborating around topics clients are interested inEmpowering advocacy by clients on our behalf

External communities

•WebSphere® Smart SOATM social network and outreach helped drive over 27K visits to SOA World Tour site

•Distribution was compounded through syndication of the Smart SOA Widget

Maximize coverage

MonitorMonitor EngagingIBM

Engagingthe Market

Influence the influencers

IBM product manager provides briefings to industry influencers on announcements.

Interest in coverage drives awareness of IBM products/services to targeted IT audience

IBM analyzed 1.5 billion posts across dozens of languages within social networking sites, blogs, message boards, and online news. …discovered over 400,000 mentions for an IBM client…

The client integrated these insights into their marketing strategy and engaged their own customers to advise the client how they use their product.

Corporate Reputation and Brand Analysis

Communities

on ibm.com®Building Social Media Communities

with Customers on ibm.com

External-facing communities

Maximize Distribution

Maximize Distribution

Identify & Engage Influencers

Identify & Engage Influencers

Empower Advocates

Empower Advocates

Page 14: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

14 Sales Teams and the Business Value of Social Software | December 2008

Social Software in Marketing and Sales processes

Client Sales Engagement Processes

MonitorMonitorMaximize

Distribution

Maximize Distribution

Identify & Engage Influencers

Identify & Engage Influencers

Empower Advocates

Empower Advocates

Engaging the Market

Engaging IBMSocial Media

MarketingProcesses

Identify & cultivate sales prospects

Web

Mar

keti

ng

So

cial

So

ftw

are

En

able

men

t

Feeds

Pro

du

ct /

Ser

vice

Off

erin

gs

Dev

elo

pm

ent

Feeds

Reviewing Customer

Needs / Conducting

Research

Reviewing Customer

Needs / Conducting

Research

IdentifyingProspective

Opportunities

IdentifyingProspective

Opportunities

Preplanning call /

Create call strategy

Preplanning call /

Create call strategy

Create SalesActivity Plans

Create SalesActivity Plans

Initial Customer

Calls

Initial Customer

Calls

Discuss/Identify

CustomerNeeds

Discuss/Identify

CustomerNeeds

Identifying Key

Decision-Makers

Identifying Key

Decision-Makers

QualifyingOpportunities

QualifyingOpportunities

Pre-salesActivities

Designing Solutions &Proposals

Designing Solutions &Proposals

IdentifyingInternal

Resources

IdentifyingInternal

Resources

CoordinatingInternal

Resources

CoordinatingInternal

Resources

Getting PriceApprovals

Getting PriceApprovals

Design&

Development

PreparingPresentation

Materials

PreparingPresentation

Materials

Presenting Solutions and

Demos

Presenting Solutions and

Demos

Negotiation &Objection Handling

Negotiation &Objection Handling

Close Sale/Take Order

Close Sale/Take Order

Account Set-up

Account Set-up

AddressingCustomer

Service IssuesInternally

AddressingCustomer

Service IssuesInternally

Monitoring Services /Solution

Monitoring Services /Solution

Delivering Services /Solution

Delivering Services /Solution

ResolvingCustomer

ServiceIssues

ResolvingCustomer

ServiceIssues

Networking /Discussing Follow-up

SalesOpportunities

Networking /Discussing Follow-up

SalesOpportunities

Solutions Review/ Quality

Assurance

Solutions Review/ Quality

Assurance

Gather CustomerFeedback

Gather CustomerFeedback

Post-saleActivities

Engaging the Client

Engaging IBM

Engaging the Client

Engaging IBM

Engaging the Client

Engaging IBM

Team Learning& Review- Sharing

Best Practices

Team Learning& Review- Sharing

Best Practices

Reviewing Customer

Needs / Conducting

Research

Reviewing Customer

Needs / Conducting

Research

IdentifyingProspective

Opportunities

IdentifyingProspective

Opportunities

Preplanning call /

Create call strategy

Preplanning call /

Create call strategy

Create SalesActivity Plans

Create SalesActivity Plans

Initial Customer

Calls

Initial Customer

Calls

Discuss/Identify

CustomerNeeds

Discuss/Identify

CustomerNeeds

Identifying Key

Decision-Makers

Identifying Key

Decision-Makers

QualifyingOpportunities

QualifyingOpportunities

Pre-salesActivities

Designing Solutions &Proposals

Designing Solutions &Proposals

IdentifyingInternal

Resources

IdentifyingInternal

Resources

CoordinatingInternal

Resources

CoordinatingInternal

Resources

Getting PriceApprovals

Getting PriceApprovals

Design&

Development

PreparingPresentation

Materials

PreparingPresentation

Materials

Presenting Solutions and

Demos

Presenting Solutions and

Demos

Negotiation &Objection Handling

Negotiation &Objection Handling

Close Sale/Take Order

Close Sale/Take Order

Account Set-up

Account Set-up

AddressingCustomer

Service IssuesInternally

AddressingCustomer

Service IssuesInternally

Monitoring Services /Solution

Monitoring Services /Solution

Delivering Services /Solution

Delivering Services /Solution

ResolvingCustomer

ServiceIssues

ResolvingCustomer

ServiceIssues

Networking /Discussing Follow-up

SalesOpportunities

Networking /Discussing Follow-up

SalesOpportunities

Solutions Review/ Quality

Assurance

Solutions Review/ Quality

Assurance

Gather CustomerFeedback

Gather CustomerFeedback

Post-saleActivities

Engaging the Client

Engaging IBM

Engaging the Client

Engaging IBM

Engaging the Client

Engaging IBM

Team Learning& Review- Sharing

Best Practices

Team Learning& Review- Sharing

Best Practices

Page 15: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

Sales Teams and the Business Value of Social Software | December 2008

Overall Sales processReviewing Customer

Needs / Conducting

Research

Reviewing Customer

Needs / Conducting

Research

IdentifyingProspective

Opportunities

IdentifyingProspective

Opportunities

Preplanning call /

Create call strategy

Preplanning call /

Create call strategy

Create SalesActivity PlansCreate Sales

Activity Plans

Initial Customer

Calls

Initial Customer

Calls

Discuss/Identify

CustomerNeeds

Discuss/Identify

CustomerNeeds

Identifying Key

Decision-Makers

Identifying Key

Decision-Makers

QualifyingOpportunities

QualifyingOpportunities

Pre-salesActivities

Designing Solutions &Proposals

Designing Solutions &Proposals

IdentifyingInternal

Resources

IdentifyingInternal

Resources

CoordinatingInternal

Resources

CoordinatingInternal

Resources

Getting PriceApprovals

Getting PriceApprovals

Design&

Development

PreparingPresentation

Materials

PreparingPresentation

Materials

Presenting Solutions and

Demos

Presenting Solutions and

Demos

Negotiation &Objection Handling

Negotiation &Objection Handling

Close Sale/Take OrderClose Sale/Take Order

Account Set-up

Account Set-up

AddressingCustomer

Service IssuesInternally

AddressingCustomer

Service IssuesInternally

Monitoring Services /Solution

Monitoring Services /Solution

Delivering Services /Solution

Delivering Services /Solution

ResolvingCustomer

ServiceIssues

ResolvingCustomer

ServiceIssues

Networking /Discussing Follow-up

SalesOpportunities

Networking /Discussing Follow-up

SalesOpportunities

Solutions Review/ Quality

Assurance

Solutions Review/ Quality

Assurance

Gather CustomerFeedback

Gather CustomerFeedback

Post-saleActivities

Engaging the Client

Engaging IBM

Engaging the Client

Engaging IBM

Engaging the Client

Engaging IBM

Team Learning& Review- Sharing

Best Practices

Team Learning& Review- Sharing

Best Practices

Page 16: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

16 Sales Teams and the Business Value of Social Software | December 2008

Social software adds value to client engagements

Engaging IBM

Engaging the client

Lotus® Connections

®Activities“I adapted IBM Lotus Connections Activities and Notes® 8.0 as a new way to track to-dos, contacts, and communications for sales prospecting and client touches• Increased number of hours spent with client prospects • Increased number of client touches by several times”

Jeannette BrowningClient Rep

S&D, ibm.com

Sales prospecting and customer-facing interactions

Coordinating the Client Engagement Team

• Sharing, communicating and collaborating around the client agenda• Focused on the team’s view of the client• Provides the “institutional memory of the client”, mostly as unstructured content

ClientSPACES™

Client Team EnablementBrainstorming, Live Demos and Testing

Scenarios with customers

LotusLive

virtualworlds

Lotus Greenhouse

Reviewing Customer

Needs / Conducting

Research

Reviewing Customer

Needs / Conducting

Research

IdentifyingProspective

Opportunities

IdentifyingProspective

Opportunities

Preplanning call /

Create call strategy

Preplanning call /

Create call strategy

Create SalesActivity PlansCreate Sales

Activity Plans

Initial Customer

Calls

Initial Customer

Calls

Discuss/Identify

CustomerNeeds

Discuss/Identify

CustomerNeeds

Identifying Key

Decision-Makers

Identifying Key

Decision-Makers

QualifyingOpportunities

QualifyingOpportunities

Page 17: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

17 Sales Teams and the Business Value of Social Software | December 2008

Social software adds value to client engagements

“When clients … approached about IBM’s Virtual World leadership, it was urgent that he find an expert ...Randy turned to Atlas for Lotus Connections… found 100 experts in Virtual Worlds, …filtered down … to find Sandra Kearney, Global Director for Virtual Business.One introduction later, and Sandra was on a plane to … meet with two major clients.”

Atlas for Lotus Connections™

Randy Frink, Americas Sales

BUE IBM S&D,

Software Sales

Engaging IBM

Engaging the client

Designing Solutions &Proposals

Designing Solutions &Proposals

IdentifyingInternal

Resources

IdentifyingInternal

Resources

CoordinatingInternal

Resources

CoordinatingInternal

Resources

Getting PriceApprovals

Getting PriceApprovals

PreparingPresentation

Materials

PreparingPresentation

Materials

Presenting Solutions and

Demos

Presenting Solutions and

Demos

Negotiation &Objection Handling

Negotiation &Objection Handling

Close Sale/Take OrderClose Sale/Take Order

“We've been using Lotus Sametime Unyte for our virtual enablement events …. What started as a pilot has greatly improved our ability to execute successful events. We never went back to our previous solution. …. Attendee satisfaction levels have gone up since there is no need to install special software or plug-ins and there is not a long lag to join a meeting or refresh a screen. It has allowed us to do more things, more effectively in our virtual events and allowed us to get the most out of our enablement budgets.”

Jason DumontWW Sales Enablement,

IBM SWG

Sametime Unyte

LotusLive Lotus Connections

Activities

Lotus SametimeUnyte®

Lotus Quickr™

Wikis

LotusLive

VirtualWorlds

LotusGreenhouse

Lotus Connections Activities

Lotus Connections Blog

Lotus Sametime

LotusSametimeUnyte

Lotus Connections Profile

Lotus Connections™

Page 18: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

18 Sales Teams and the Business Value of Social Software | December 2008

Engaging IBM

Engaging the client

Social software adds value to client engagements

Account Set-up

Account Set-up

AddressingCustomer

Service IssuesInternally

AddressingCustomer

Service IssuesInternally

Monitoring Services /Solution

Monitoring Services /Solution

Delivering Services /Solution

Delivering Services /Solution

ResolvingCustomer

ServiceIssues

ResolvingCustomer

ServiceIssues

Networking /Discussing Follow-up

SalesOpportunities

Networking /Discussing Follow-up

SalesOpportunities

Solutions Review/ Quality

Assurance

Solutions Review/ Quality

Assurance

Gather CustomerFeedback

Gather CustomerFeedback

“When I needed to jointly edit a client reference video script with marketing, I started by creating an [wordprocessor] document and emailing it to my marketing contact, but that was slow and cumbersome.I moved everything to a wiki and immediately saw a decrease in script development time.”

Scott Kelly,AMS, Sales Enablement

IBM GBS

Wikis

Lotus Connections Activities

Lotus Connections Blogs

CattailLotusLive Lotus

Quickr

Communities

on ibm.com

Building Communitieswith CustomersSales Rep to Client collaboration environmentSales reps collaborating with customers in private communities on ibm.com

Jolene IsdaleProject Manager

IBM S&D, ibm.com

virtualworlds

“Since the army of contributors behind Cattail has been so helpful and saved me weeks' worth of selling time [in other engagements], I've joined them by sharing files I've come across and found interesting. It's quick, easy, and gratifying to know other IBMers from Netherlands to Korea have downloaded my files -- and just maybe, found them useful.”

Martin Chai,Lotus Sales

IBM S&D, Software

Sales

CattailTM

Team Learning& Review- Sharing

Best Practices

Team Learning& Review- Sharing

Best Practices

ClientSPACES

LotusSametime

Lotus Atlasfor Connections

Lotus SametimeUnyte

Lotus Connections

Blogs

Page 19: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

19 Sales Teams and the Business Value of Social Software | December 2008

Seller pain points and targets to improve value

FindExpertise

FindExpertise

DevelopRelationships

DevelopRelationships

DiscoverExisting

Knowledge

DiscoverExisting

Knowledge

ShareInformation

ShareInformation

Common Seller Pain PointsCommon Seller Pain Points

DEVELOP PRE-SALES

DEVELOP

POST-SALES

DEVELOP

Impacts steps in Impacts steps in Impacts steps in Impacts steps in

POST-SALES

DEVELOP

POST-SALES

Sellers complaints andUsability findings

- Lotus User Experience team

2007 WW IBM S&D SalesValue Survey Update

IBM SWG Social SoftwareEnablement team

IBM CIO WorkplaceEffectiveness Survey

Q1, Q2 2008

Page 20: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

20 Sales Teams and the Business Value of Social Software | December 2008

Value to Sellers and Business Impact

Team members seek ideas/expertise

from people external to the team

Team members seek ideas/expertise

from people external to the team

Diverse perspectives valued

Diverse perspectives valued

Denser social networks

Denser social networks

Team members work together to

ensure the client is successful

Team members work together to

ensure the client is successful

Team communicates well

on client activities/issues and

how to respond

Team communicates well

on client activities/issues and

how to respond

FindExpertise

FindExpertise

DevelopRelationships

DevelopRelationships

DiscoverExisting

Knowledge

DiscoverExisting

Knowledge

ShareInformation

ShareInformation

Know where to look for expertise and

aid

Know where to look for expertise and

aid

Establish long termnetworks of

expertise

Establish long termnetworks of

expertise

Discover and reuse existing knowledge,

or expertise

Discover and reuse existing knowledge,

or expertise

Become a network resource and get

invited to collaborate on more

deals

Become a network resource and get

invited to collaborate on more

deals

Improve productivity;

More time to focus on client success

Improve productivity;

More time to focus on client success

Build relationships to experts and

resources; Demonstrate and

proliferate IBM values

Build relationships to experts and

resources; Demonstrate and

proliferate IBM values

Increase efficiency through knowledge

reuse

Increase efficiency through knowledge

reuse

Reinforce value of Team IBM

Reinforce value of Team IBM

Value toSeller

BusinessImpact

High-Performing Team Attributes

Seller Activities

/ Pain Points

Page 21: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

21 Sales Teams and the Business Value of Social Software | December 2008

Methodology

Sales Performancedatabase

Low-Performing

High-Performing

Social SWUsers

NonUsers

$ $

Hypothesis: Use of social software should improve the performance of software sellers, leading to enhanced team performance.

Prediction: We would expect

• Sellers with high social software usage will appear on high-performing teams (upper right quadrant); and

• Sellers with little or no social software usage will appear on low-performing teams (lower left quadrant).

Social SW UsersNon Users

Low-perfoming SW sales teams

High-perfoming SW sales teams

$

Data from Wikis

InternalCommunities

Social Tagging / Lotus Connections

Dogear data

Page 22: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

22 Sales Teams and the Business Value of Social Software | December 2008

Study Results Our results show that members of high performing teams use social software more than their low performing counterparts.

The results of our analysis were close to proving statistical significance.

• With additional data, we may be able to show conclusive evidence.

• We need larger samples, more complete sales teams, and to track more applications.

Cross-Service

Statistically significant difference

limits

23 Peo-ple

18 Peo-ple

Need More Teams with Data

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

High Performing Low Performing

Software Sales Team Performance

% T

eam

s w

ith

Mem

ber

s P

arti

cip

atin

g in

C

om

mu

nit

ies

Need More Data on Team Members

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

High Performing Low PerformingSoftware Sales Team Performance

% C

om

mu

nit

y M

emb

ersh

ip p

er P

erso

n

13 Teams

10 Teams

Page 23: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

23 Sales Teams and the Business Value of Social Software | December 2008

IV. Conclusions

Page 24: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

24 Sales Teams and the Business Value of Social Software | December 2008

Conclusions

1 Social software is changing how sellers work.

2 Not all sellers understand how social software directly benefits them.

3Current social software metrics collection systems focused on activity alone are inadequate.

4Social software yields performance benefits in the client engagement process, but there is more to learn.

Page 25: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

25 Sales Teams and the Business Value of Social Software | December 2008

“We've been using Lotus Sametime Unyte for our virtual enablement events …. What started as a pilot has greatly improved our ability to execute successful events. We never went back to our previous solution. …. Attendee satisfaction levels have gone up since there is no need to install special software or plug-ins and there is not a long lag to join a meeting or refresh a screen. It has allowed us to do more things, more effectively in our virtual events and allowed us to get the most out of our enablement budgets.”

Jason DumontWW Sales Enablement,

IBM SWG

Sametime Unyte

1. Social software is changing how sellers work.

Conclusions

Conclusion: We must spread the message on how sellers are discovering value in social software to encourage greater adoption.

Some sellers are adding social software to their repertoire of tools and methods to support their jobs.

Sellers who adopt social software are discovering the value for themselves, in their own terms.

Sellers who adopt social software can explain how social software improves their effectiveness.

When clients … approached about IBM’s SecondLife Virtual World leadership, it was urgent that he find an expert ...Randy turned to Atlas… found 100 experts in Virtual Worlds, …filtered down … to find Sandra Kearney, Global Director for Virtual Business.One introduction later, and Sandra was on a plane … to meet with two major clients.

Atlas

Randy Frink,Americas Sales BUE

IBM S&D, Software Sales

ActivitiesAdapted Lotus Connection

Activities and Notes 8.0 as a new way to track to-dos, contacts, and communications for sales prospecting and client touches• Increased number of hours spent with client prospects • Increased number of client touches by several times

Jeannette BrowningClient Rep

S&D, ibm.com

Page 26: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

26 Sales Teams and the Business Value of Social Software | December 2008

2. Not all sellers understand how social software directly benefits them.

Conclusions

Conclusion: We must study how individual sellers demonstrate improvements in their productivity.

The adoption rate shows only a subset of sellers are utilizing social software.

Sellers need to be convinced that social software translates to improved productivity.

It is confusing to know which tool to use for which task.

IdentifyingInternal

Resources

IdentifyingInternal

Resources

CoordinatingInternal

Resources

CoordinatingInternal

Resources

Lotus Connections Activities

Lotus Connections Blog

Lotus Sametime

LotusSametimeUnyte

Lotus Connections Profile

Page 27: Sales Teams And Value Of Social Software (IBM)

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© Copyright IBM Corporation 2008, 2009. All rights reserved.

27 Sales Teams and the Business Value of Social Software | December 2008

3. Current social software metrics collection systems focused on activity alone are inadequate.

Conclusions

Conclusion: We must develop relevant new metrics and find ways to automate and standardize metrics collection.

Challenges in attribution• High degree of difficulty in attributing social software usage to

individuals, teams, job roles, or geographies.• The data is further limited after addressing privacy constraints

that vary by countries and geographies.

Non-uniform metrics across distributed social software tools• Variations in types of metrics available in different social tools

create gaps and disparities.• Accessing data for periods longer than a month often requires

significant manual processing.

Usage / Activity metrics do not show outcomes nor relationships• Usage metrics do not show the nature of relationships between

members, which is a key attribute of high-performing teams. • Usage metrics do not directly show the outcome or benefit to

users, nor the user’s productivity from that activity.• Usage metrics alone does not show why a user prefers a

social software tool for a particular task.• Social software metrics should be a factor in business

diagnostics.

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28 Sales Teams and the Business Value of Social Software | December 2008

4. Social software yields performance benefits in the client engagement

process, but there is more to learn.

Conclusions

Conclusion: We must conduct a more comprehensive analysis to establish quantitative value.

Qualitative value of social software applies to many points in the client engagement process• Lead adopter individual sellers find value.• High performing sales teams use it more. • These tools encourage seeking expertise outside their team

(high-performing team attribute).• Social software reduces the barriers between teams.

Possible to show quantitative value (ROI), but requires deeper study• We are still in an early adoption stage among sellers.• A strength of social software is its use across many job roles,

which makes it difficult to isolate a specific population.• Social software value is likely an intangible asset.• Value in social software grows as tools evolve and adoption

increases.

"None of these intangible assets has value that can be measured separately or independently.  The value of these intangible assets derives from their ability to help the organization implement its strategy…  Intangible assets such as knowledge and technology seldom have a direct impact on financial outcomes such as increased revenues, lowered costs, and higher profits.  Improvements in intangible assets affect financial outcomes through chains of cause-and-effect relationships.“

- Robert S Kaplan (Harvard Business School), David P Norton (Balanced Scorecard Collaborative), “Strategy Maps: Converting Intangible Assets into Tangible Outcomes”, Harvard Business School Press, (Boston, 2004)

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© 2008 IBM Corporation16 Sales Teams and the Business Value of Social Software | Gina Poole | December 2008

Social software adds value to client engagements

Engaging IBM

Engaging the client

Lotus®Connections

Activities

“I adapted Lotus Connections Activities and Notes 8.0 as a new way to track to-dos, contacts, and communications for sales prospecting and client touches• Increased number of hours spent with client prospects • Increased number of client touches by several times”

Jeannette BrowningClient Rep

S&D, ibm.com

Sales prospecting and customer-facing interactions

Coordinating the Client Engagement Team

• Sharing, communicating and collaborating around the client agenda• Focused on the team’s view of the client• Provides the “institutional memory of the client”, mostly as unstructured content

ClientSPACES™

Client Team EnablementBrainstorming, Live Demos and Testing

Scenarios with customers

LotusLive

virtualworlds

Lotus Greenhouse

Reviewing Customer Needs /

Conducting Research

Reviewing Customer Needs /

Conducting Research

IdentifyingProspective

Opportunities

IdentifyingProspective

Opportunities

Preplanning call /

Create call strategy

Preplanning call /

Create call strategy

Create SalesActivity Plans

Create SalesActivity Plans

Initial Customer

Calls

Initial Customer

Calls

Discuss/Identify

CustomerNeeds

Discuss/Identify

CustomerNeeds

Identifying Key

Decision-Makers

Identifying Key

Decision-Makers

QualifyingOpportunities

QualifyingOpportunities

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29 Sales Teams and the Business Value of Social Software | December 2008

Reference Materials

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30 Sales Teams and the Business Value of Social Software | December 2008

Does the team have the skills necessary to collaborate effectively?

(e.g. technical, communication, people, business, etc)

Skills

Do we have methods or tools to collaborate?Mechanism

Do I want to be approached?How do I approach this person?Access

Why will I cooperate with this person?

Am I motivated to work with this person?Motivation

How can I develop my reputation as a trusted partner?

Will this person help me?Benevolence (Trust)

How can I advertise my expertise?Is this person competent?Competence (Trust)

How can I become more known?How do I know who is out there?Awareness

ContributorsI am someone

SeekersI need someone

Critical Success Factors

Re

latio

nsh

ipF

act

ors

Cu

ltura

lF

act

ors

Co

llab

ora

tion

infr

ast

ruct

ure

More than just a “way to collaborate”

Can we assess the business value of these mechanisms?Measurement

Background

Critical Success Factors for Social Networking

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31 Sales Teams and the Business Value of Social Software | December 2008

Applying the key tenets of social media marketingTENET Application Marketing Goal Tactics Metrics

Monitor Listen to the market conversation to better understand your current position in the marketplace.

Gather market intelligence

Understand current market position

● Cobra (IBM)● Google News Alerts● Technorati

● Volume of conversation● Expansion of conversation● Usage of key tags and keywords

Identify and Engage

Identify and engage key influencers who are influencing the market conversation around your brand, product, or service.

Improve the market conversation around your product or service

● Keyword Search● Referral Traffic● Social networks● Blogrolls and blog search engines● Blogs

● External search referrals● Inbound links from social media referrals● Prioritized list of influencers and impact

Maximize Distribution

Maximize distribution and impact of key digital marketing assets

Drive awareness and evaluation of your product/service

● Embedding keywords● Effective tagging● Content push to key aggregators / syndicators● Viral (widgets, etc.)

● Online buzz● Total distributions of asset● Downloads● Registrations● Natural search rankings

Empower Advocacy

Build and foster brand loyalists and empower them to advocate on behalf of your brand.

Enable and empower your advocates to market on your behalf

● Wikis● Communities● Ideation solutions● Social networks● Support forums

● Number of participating members (unique visits, etc.)● Volume of posts/questions● Decrease in support calls● Decrease email inquiries

Discussion

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Sales Teams and the Business Value of Social Software | December 2008

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