Open Innovation in the Social Era: Preparing for the disruptive innovations thru social collaboration

Transcription

1 Open Innovation in the Social Era: Preparing for the disruptive innovations thru social collaboration Andy Kim Global Electronics Lead IBM Global Business Services 2014 Global InnoBrand Forum May 19, Taipei, Taiwan

2 The world is now are in a new era of an empowered customer that expects a seamless customer experience 120 Billion minutes on social sites (+25% of online ) 1 Billion smart phones shipped in 2013 (+140% vs. 2012) 95% of CXO believe customer experience is the next competitive battleground Consumers have unlimited access to information & instantly share it. Social networking and mobile commerce changed the dynamic between buyer & seller. and causing to lift up customer expectations further. changing the entire way products are conceived, sourced, manufactured, and distributed 500 million tweets sent each day 86% of consumers use multiple channels $93 billion in sales missed due to out of stock inventory 2

3 Consumers are getting socially smarter, vocal and more connected. 81% receives advice thru a social site about upcoming purchases; 74% of those found it influential in their purchase decision 90% of consumers shared their dissatisfaction with others; 59% of those will leave comments in blogs or social media. 61% of consumers rely on product information before making a decision 90% of consumers trust friends and family for advice on purchase decision However, many product recommendation tools are based on transaction history and browsing behaviors, rather than by sentiment analysis and social connections of the prospect users. Source: IBM smarter commerce advanced social analytics platform research 2013

4 How to collaborate, not compete internally across multi-touch points with consumers? Aware Research Purchase Possess Advocate Shopping Moment Customer Expectations Shopping Channels Brand Promise Customers Retailers Manufacturers Distributors Customer Experience Value realization 4 Store Web Site Contact Center Mobile Social Web Store Devices

5 New capabilities to face the socially empowered customer challenges. Customer Focused Strategy Customer Experience Design Social Business Mobile and Cross Channel Strategy Voice of the Customer Customer Centricity Omni-Channel Transformation Digital Channel Transformation Mobile Application Development Field/Store/Branch Transformation Business Process Management Enterprise Content Management Collaboration Tools CTI/IVR Solutions Master Data Management Customer Master Solutions Data Governance Single View of the Customer Analytics & Customer Insights Predictive Analytics & Modeling Sales, Service & Marketing Analytics Business, Web, and Social Analytics Customer Segmentation 5

6 How much are you ready in the social era? It seems to happen from nowhere. However once it happens, it can go easily out of control. 6

7 IBM asked 524 CMOs of the global leading companies in 56 countries across 19 industries regarding their preparedness & challenges of digital marketing. North America 61 South America 69 Western Europe 180 Central and Eastern Europe 57 Japan Middle East and Africa 46 Asia Pacific Source: Question E Participant Country 7

8 In the past 3 years, CMOs have made surprisingly little progress towards implementing key digital marketing strategy components Activation of digital strategy components Customer collaboration using social networks Integrated customer touchpoints across physical and digital channels Networked workforce with skills aligned to business opportunities Advanced analytics to capture customer insight across all touchpoints Digitally enabled supply chain 13 % 20 % 28 % 52 % 16 % 38 % 13 % 29 % 37 % 46 % 51 % 59 % 11 % 30 % 59 % Large extent Somewhat Limited extent Source: Question CMO1 To what extent have you activated the following digital strategy components within your enterprise? 8

9 CMOs feel as underprepared for the 2 big technology shifts as before; the rate of change seems faster than many can cope with Preparedness for the Data Explosion Preparedness for Social Media Underprepared Prepared 71 % 82 % 68 % 66 % 29 % 18 % 32 % 34 % Source: Question CMO4 How prepared are you to address the following market factors (data explosion and social media)? 9

10 4 Strategic Enablers for Successful Social Marketing Deployment Social Listening Early Warning System Social Responding Social Collaboration 10

11 Social Listening 壞事傳千里 11

12 How do you listen?

13 Purpose of the Engagement Centre Social data Customer service data Operational data Demo/Social capital data Transactional data Organisational data Environmental data Customer satisfaction data Engagement Centre Crisis management Customer support Market research Measurement/Data integration Monitoring/Outreach Knowledge management Influence Internal Data: Real-time actionable insight Dashboard: Feel the pulse of the business Operational: In-flight campaign, Operations 13 13

14 Social Responding One small mishandling can spoil the whole relationship. 14

15 Customers spend 20-40% more with company providing proactive care thru the social channels. 49% of users expect company to read when they Tweet complaint Opportunity However, only 29% Twitter user actually got contacted by company 83% of them loved/liked receiving a response Customers spend 20% - 40% more with the company who respond to customer service requests over social media 15 Source : Maritz Research Company, 2011, Buffer Social App Company, 2014

16 16 Source: IBM Global Research 2014

17 Social Collaboration 17

18 The rule of competition is changing rapidly, driven by 3 key disruption drivers. Company Generated Social P2P Reputation +71% more likely to make a purchase by social referrals in US. Geo/time Bounded Mobile Anytime Anywhere Always-on +20% of online sales come from m-commerce in Korea. Multi-channel Conflict Mgmt O2O Omni-channel Synergy +24% of customers contacted more than 3 channels before making purchase. 18 Source : IBM Global Research, Forces 2013

19 Social impact in value chain Establish social listening to monitor possible risks with existing suppliers and to identify potential new partners Connect primary & tiered suppliers through collaborative environment & data to create transparency & reduce risk Develop talent in the geographic areas of greatest demand and skill gaps (usually emerging markets) Human Resources Procurement Research Develop Manufacture Configure Sales Marketing Customer Service Identify customer unmet needs and validate priorities. Establish collaborative development & manufacturing with key suppliers to drive innovation, quality, and more effective sourcing Link suppliers and sales/ customer support teams for better communication, service and efficiency Crowd source demand volume and location for sourcing P2P self-service lowers the cost to serve, lifting satisfaction. 19

20 Xiaomi, the Apple of China with disruptive fanboyism connections. 20

21 Social Storefront Liked-Shared-Sold vs. Reroute-relog-reclick Social media integrated storefront for natural conversion Privacy concern Inconvenience from multi sign-on & steps Social storefront in SNS Backend integration w/ APIs Traditional Standalone eshop 21

22 Make social network as your ecommerce store front 22

23 Facebook social shop 23

24 Social storefront in restaurant business (Foursquare) Foursquare launched a new mobile app, Square Order, which lets customers order from nearby eateries, pay for it, and then get a ping when it is ready for collection. 24

25 Twitter storefront for Amazon 25

26 3S(Search-Share-Shop) Brazil fashion brand C&A facebook hanger 26

27 O2O Case: Tesco Virtual Store 27

28 O2O Case: Counter Strategy from emart 28

29 Omni-channel best practice in bookstore business Transform the showrooming offline to attract online buyers. +80% sales growth with on/offline synergy Over the last 10 years in Korea, 30% of bookstore closed down behind the disruptive online players. And online bookstore sales growth decreased by 10% first time ever in How only Bandi&Lunis outgrows the competition? 29

30 Connected consumers behind digital transformation have set a new rules of building brand and customer loyalty. one that is more complex and demanding than ever before Location Aware Suppliers Data Everywhere Channel Collaboration Speed Influence Always Connected Buy anywhere, anytime Customer Centric Social Connections Loyalty and there is now an increased urgency to be prepared for these challenges

31 Let s keep in touch!!! Andy Kim Global Electronics Lead Global Business Services kdowung@kr.ibm.com dowungkim dowungkim