Kevin Eagan Chief Digital Experience Officer & GM Digital Platforms

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1 Kevin Eagan Chief Digital Experience Officer & GM Digital Platforms

2

3 The Digital Revolution Changing the way business is transacted Buyer Expectations 70% 71% Market Opportunity 89% >50% of the buyer journey is completed before they engage face to face. CEB Marketing Leadership Council Research of lead opportunities are expected to come from digital sources. Dec 2015, IBM Buyer Behavior Study of marketers expect customer experience to be their primary differentiator by Gartner, Gartner for Marketers, 2016 of developers will embed cognitive capabilities into their apps. Gartner, Gartner for Marketers, % 46% 28% $11T of buying decisions are influenced by digital engagement. Millward Brown Digital B2B path to purchase study, March 2015 of B2B buyers are now millennials. 20 point increase in past 2 years Millward Brown Digital B2B path to purchase study, March 2015 of worldwide enterprise applications will be SaaS-based, generating $50.8B in revenue. IDC WW SaaS Enterprise Applications Forecast is the potential economic value by 2025 of the connected devices. Unlocking the potential of Internet of Things. McKinsey & Company, June 2015

4 IBM s Digital Challenge 143 off-site domains 16 major company acquisitions scale 24 million pages on IBM.com Complicated Customer Journeys Consumerization of IT Powerful, yet complex solutions Bottoms-up buyer power Visibility to performance Relationship selling expertise

5 Digital Reinvention IBM Establish the NorthStar method radically simplify the funnel Establish a digital management system understand assessment of IBM marketing & sales Focus on the total customer experience engage, delight and convert Culture of experimentation secret to disruptive improvement digital laggard digital leader

6 Established a vision to radically improve IBM s Digital engagement Project NorthStar - Built a vision the future - Built a clickable prototype - All levels of journey discovery, engage, convert and advocacy - Fully responsive (any device/os/screen) - Defined Personas - Clean, streamlined customer journeys - Unified ID and account management - Integrated Marketplace

7 Digital Management System Data-informed, Customer-responsive Maps KPIs from CEO to frontline End-to-end data model Unifying model for customers & business data Many visualizations, single data source

8 Total customer experience to engage, delight & convert extraordinary customer experiences

9 Total customer experience to engage, delight & convert Strategy Enable highly compelling experiences Drive usage & conversion Create highly-satisfied lifetime customers an essential competitive strategy Walk in the customer shoes Understand the complete customer experience Walk a mile and then the last 10 feet Outside-in perspectives Measure for success

10 Challengers Contenders Strong Performers Leaders Watson IoT Strong SAP LogMein Current offering Exosite Ayla Networks Cisco Jasper Zebra Technologies Market presence Weak Full vendor participation Weak Strategy Strong Forrester IoT Wave Report, positioning of players

11 IoT Watson Platform (Before) SEARCH LANDING EVIDENCE & RESOURCES IBM / EXPLORE IOT BLUEMIX CONSOLE / SIGNUP WATSON IOT / PLATFORM SETUP 1 Google search results: Internet of Things Platform 2 Watson IoT Solutions Marketing Page 3 Watson IoT Developer Page Try Watson IoT Platform CTA DEAD END Additional content/resources paths are recursive and link the user back to the IoT page None of the resource pages directly link out to the IoT Marketplace PDP or Console page. 4 Play Try Buy Page internet-of-things-cloud/us/en-us 6 Bluemix Signup 9 Bluemix setup wizard 7 Confirmation 8 Sign up success 11 FROM MARKETPLACE JOURNEY Bluemix Console IoT (logged into Bluemix) atalog/services/internet-ofthings-platform/ System recognizes Bluemix login and changes CTA copy from Sign in to Create to Create - No onboarding/getting started instructions on initial dashboard load that a user can lean on for navigating and understanding the platform. - Consider designing a helpful zero state that can offer helpful guidance around Goal Delight IoT developers and activate innovation at scale Strategy Bing search results: Internet of Things Platform 4a MARKETPLACE (Alternative Path) Watson IoT Marketplace PDP 10 NON-MARKETPLACE JOURNEY Play Try Buy Page (logged into Bluemix) Apply TCX science to address customer pain points Clicking pricing scrolls user down to pricing table. No change URL 5 Bluemix Console - IoT This is a dead end. Stuck on loading state and was not able to deploy IoT platform trial.

12 IoT Watson Platform (After) Results 133% reduction in clicks to registration 84% increase in trials 460% increase in trial usage 296% increase in usage after purchase

13 Enabling a culture of experimentation

14 SPSS Marketplace Product Page +1022% increase in engagement Marketplace Homepage Experimentation example * Aberdeen Group: Customer Journey leads to advocacy report Nov 2016

15 Bold, tightly integrated digital strategies will be the biggest differentiator between companies that win and companies 3 that don t, and the biggest payouts will go to those that initiate digital disruptions. McKinsey Quarterly February 2017

16 As uncertainty increases about where technology is heading, the focus on total customer experience is a digital leader's Northstar.. Kevin Eagan May 2017

17 Thank you

18

19 Notices and disclaimers Copyright 2017 by International Business Machines Corporation (IBM). No part of this document may be reproduced or transmitted in any form without written permission from IBM. U.S. Government Users Restricted Rights use, duplication or disclosure restricted by GSA ADP Schedule Contract with IBM. Information in these presentations (including information relating to products that have not yet been announced by IBM) has been reviewed for accuracy as of the date of initial publication and could include unintentional technical or typographical errors. IBM shall have no responsibility to update this information. This document is distributed as is without any warranty, either express or implied. In no event shall IBM be liable for any damage arising from the use of this information, including but not limited to, loss of data, business interruption, loss of profit or loss of opportunity. IBM products and services are warranted according to the terms and conditions of the agreements under which they are provided. IBM products are manufactured from new parts or new and used parts. In some cases, a product may not be new and may have been previously installed. Regardless, our warranty terms apply. the results they may have achieved. Actual performance, cost, savings or other results in other operating environments may vary. References in this document to IBM products, programs, or services does not imply that IBM intends to make such products, programs or services available in all countries in which IBM operates or does business. Workshops, sessions and associated materials may have been prepared by independent session speakers, and do not necessarily reflect the views of IBM. All materials and discussions are provided for informational purposes only, and are neither intended to, nor shall constitute legal or other guidance or advice to any individual participant or their specific situation. It is the customer s responsibility to insure its own compliance with legal requirements and to obtain advice of competent legal counsel as to the identification and interpretation of any relevant laws and regulatory requirements that may affect the customer s business and any actions the customer may need to take to comply with such laws. IBM does not provide legal advice or represent or warrant that its services or products will ensure that the customer is in compliance with any law. Any statements regarding IBM's future direction, intent or product plans are subject to change or withdrawal without notice. Performance data contained herein was generally obtained in a controlled, isolated environments. Customer examples are presented as illustrations of how those customers have used IBM products and

20 Notices and disclaimers continued Information concerning non-ibm products was obtained from the suppliers of those products, their published announcements or other publicly available sources. IBM has not tested those products in connection with this publication and cannot confirm the accuracy of performance, compatibility or any other claims related to non-ibm products. Questions on the capabilities of non-ibm products should be addressed to the suppliers of those products. IBM does not warrant the quality of any third-party products, or the ability of any such third-party products to interoperate with IBM s products. IBM expressly disclaims all warranties, expressed or implied, including but not limited to, the implied warranties of merchantability and fitness for a particular, purpose. The provision of the information contained herein is not intended to, and does not, grant any right or license under any IBM patents, copyrights, trademarks or other intellectual property right. IBM, the IBM logo, ibm.com, Aspera, Bluemix, Blueworks Live, CICS, Clearcase, Cognos, DOORS, Emptoris, Enterprise Document Management System, FASP, FileNet, Global Business Services, Global Technology Services, IBM ExperienceOne, IBM SmartCloud, IBM Social Business, Information on Demand, ILOG, Maximo, MQIntegrator, MQSeries, Netcool, OMEGAMON, OpenPower, PureAnalytics, PureApplication, purecluster, PureCoverage, PureData, PureExperience, PureFlex, purequery, purescale, PureSystems, QRadar, Rational, Rhapsody, Smarter Commerce, SoDA, SPSS, Sterling Commerce, StoredIQ, Tealeaf, Tivoli Trusteer, Unica, urban{code}, Watson, WebSphere, Worklight, X-Force and System z Z/OS, are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at "Copyright and trademark information" at:

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