Social Media and ROI: Why use-cases are more compelling than Excel sheets; RIP 4 ROI

Siemens IT Solutions and Services

Copyright © Siemens AG 2010. All rights reserved.

Social media and ROI: why use-cases are more compelling than excel sheets?

Presentation at the “Enterprise Social 2.0: RIP or ROI?” Summit, Amsterdam 2010

Assoc. Prof. Dr. Michael HeissVice President for Knowledge, Innovation, Technology

Siemens IT Solutions and Services,Solution Development and Engineering (SDE)

Assoc. Prof. Dr. Michael HeissVice President for Knowledge, Innovation, Technology

Siemens IT Solutions and Services,Solution Development and Engineering (SDE)

Page 2 January 2010

Protection notice / Copyright © Siemens AG 2010. All rights reserved.

Siemens IT Solutions and ServicesDr. Michael Heiss

Main Message: RIP 4 ROIRIP 4 ROIRest in Peace for Return on Invest

RIP 4 ROIRest in Peace for Return on Invest


How to convince the CxO about the ROI of social media?

TechnoWeb 2.0 and the concept to minimize the costs and maximize the business benefit

Balanced Scorecard of TechnoWeb 2.0: choosing the right KPIs to measure performance

Use-Cases where nobody asks about ROI

Conclusion

Agenda

Page 4 January 2010



„All“ business plans look the same...

3 years

time

earnings

Page 5 January 2010



...and one year later, too ;-)

again 3 years

time

earnings

4 years1 year

Why should CEOs trust such business plans?

Page 6 January 2010



A gut-feeling for ROI helps to convince the CxO but is not sufficient to get their O.K.

Trend setting: 31,6 % of TechnoWeb members are already in Siemens top priority trends (analysis FY08/09).

Early/fast identification: Significant Improvement regarding availability/visibility of new technologies.

Innovation: TechnoWeb members have a 7 times higher probability of a successful innovation idea.

Cost reduction: 0‘4 Mio €* in FY08/09 could be saved only by the TechnoWeb urgent requests.

Business impact

*At this time TechnoWeb was operating only in one Siemens division and the yearly operation costs was 0‘1 Mio €

they want to feel a demandby the operative units

Invest: 0’1 Mio €Benefit: 0’4 Mio €

ROI > 300%

Page 7 January 2010


Siemens IT Solutions and ServicesDr. Michael HeissPage 7

Vision of an cross-divisional networked Enterprise 2.0

Source: Social Network Analyzes atSiemens IT Solution and Services SDE

„Who has helped you in your professional work during the last 12 month?“






Conclusion

Agenda

Page 9 January 2010



The elevator pitch of „What is TechnoWeb 2.0?“

1) Do not expect to find answers directly in TechnoWeb, but expect to find the experts who know the answer!

TechnoWeb is a unique routing engine

to find people1) who know answers to your questions.

.

There are a lot of other features supporting the business.

OnlyPre-requisite is to join a network once 2)

2) High activity level not necessary.

Page 10 January 2010



The main idea of TechnoWeb 2.0 : identify implicit knowledge via the activity stream of the experts

Brain

Face 2 Face

Voice

pers. E-mails

pers. Desktop

Proj. E-mails

Blogs, Microblogs, Wikis, CRM, CM, Intranet

Internet, publications

DIG

ITIZ

ED

NO

N D

IGIT

IZE

D

activity stream

visible

limited access

data privacy

not visible

low

er a

cces

sibi

lity

hig

her

acce

ssib

ility

high

er b

usin

ess

valu

e

lo

wer

bus

ines

s va

lue

identifiable

...in other words: RIP 4 ROI

, Gerhard Käfer




How does TechnoWeb 2.0 work?Everybody may initiate or join a network

Personalized dashboard(incl. activity stream of joined networks)

Network pages, with member list,partner network list, activity stream

Public profile pages of each user (incl. activity steam)

with news and RSS-feedsUrgent request

+ Tag/Technology page+ Search page+ integration of Sharepoints,wikis, blogs...

Open to all Siemens employees






Conclusion

Agenda




RIP 4 ROI: the overall ROI is not honestly measurable but has a lot of indicators

costsBusiness Development,

Requirements Engineering, Development, Operation in €

investattract

boost (RIP) win (ROI)

development# of change requests solved

understanduse-cases

# of use-cases from use-case workshops

become network member

# of network memberships

connectnetworks# of partner networks

offer services# of offered services

increase activitiessum of # of news, # of comments, # of taggings, # of micro-blog-posts

business benefit

# of „thanks“-feedbacks,# of „I like it“

passive benefit # of memberships in active networks

answered urgent requests# of urgent requests, Ø# of comments,

Ø time of first response

joinTechnoWeb

# of new users

awareness# of presentations, publications,

awareness measures

cross-division interaction

Ø # of divisions in networks

Driver Tree for the TechnoWeb Balanced Score Card

initiate new networks

# of new networks






Conclusion

Agenda




Use-Case Cloud of TechnoWeb:(in green: TechnoWeb as routing machine – connecting people)

Result of use-case study during the pilot phase. The size represents the frequency/significance**.

technology decision support (evaluation finder)

expert finder

personal career management

awareness promotion for new technologies/methods

I know about a technology which might be important for Siemens

Integration of countries

share practices

Internal promotion of offerings(incl. long tail) Urgent Request

tender support

trend monitoringinnovation idea maturing*

integration of new acquisitions

Share customer experience

Share supplier experience

Has anybody experience with…?

forward relevant white paper

forward event invitation

just-in-time re-useof code or concepts

reviewtechnology transfer

risk minimization

fire brigade

training on the job

cross selling

technology breeding

checking business relevance

avoiding double-work

one offer to the customer

improved search results (emerging structure)

training alumni groups*

* Emerging use-case: not planned to be a use-case ** estimated

driving cross-sector initiatives




Concrete Example for business impact of TechnoWeb

A customer problem with an Oracle database (Bitmap Index) could be solved via urgent request by 3 people from different countries and different organizational units within a couple of hours

Within a project, expertise regarding a millimeter precise localization application by RFID was needed. No one at Healthcare has experience in this field. Via TechnoWeb 2.0 and in the network RFID a couple of important open questions could be answered.

The traffic agency of California asks CT Princeton for a cooperation with Siemens regarding car-to-car technology. The request was forwarded to the Austrian experts of the car- 2- X TechnoWeb network who at least made a deal about a cooperation.

Solve urgent customer problem

Identify know how

Generate new business

The few days in TechnoWeb 2.0 and in the network RFID have revealed to be already very fruitful. I exchanged a lot of emails and telephone calls through Germany and Austria and could

clarify a couple of important open questions

…I would like to thank all of you for helping me.My TechnoWeb 2.0 experience is fantastic and to be honest I didn't expect to find a solution so fast! This is a great tool that was missing….

Thanks to the colleagues in Princeton we got the big chance to have a foot in the door of the US car-2-X market. With our network profile in TechnoWeb 2.0 we can be found very easily.

, Gerhard Käfer






Use-Case 1: Cross selling

Conclusion

Agenda




The traffic agency of California asks for a cooperation with Siemensfor car-to-X communication




Tamer and Justinian from CT Princeton do not know about car-to-X communication within Siemens and deny the request.




2 months later Tamer and Justinian attend a conference in USA and meet Herbert from CT Vienna

2 Months later Tamer and Justinian meet Herbert, a colleague from Vienna at a conference in USA.

In a coffee break they are talking about new developments, and by the way about car-to-X communication.

Herbert tells Tamer and Justinian that CT Vienna offers a complete software based car2car/ Infrastructure communication.

, Susanne Mörl




Back in California, Tamer contacts the traffic agency in California and makes the deal to cooperate in car-to-X communication;several other deals followed.




Existing network in TechnoWeb

Herbert isco-moderator

offering






Use-Case 2: Urgent Request

Conclusion

Agenda




Greece, 20.10.09, 16:22 GMT+1

Plz Help! ORACLE BITMAP INDEX CBO I am facing a problem in the customer's PROD database (ORACLE 10g). This problem is not reproduced in our test environment. Any help is highly appreciated.

Real Example – Urgent Request from SIS Greece

, Susanne Mörl




First answer after 49 min from CT Germany

Germany, 20.10.09, 17:11GMT+1

Hi,When you are not satisfied with the executation plan you could convince oracle to utilze some other index via sql hints.

something like …

, Susanne Mörl




The answer does not work in my case

Hello,thank you very much for your prompt reply!

You are right, with oracle hints one can alter the execution plan. Unfortunately, the query is automatically generated from Business Objects, thus have no way to introduce the hint.

Greece, 21.10.09, 09:10GMT+1

, Susanne Mörl




Second answer after 17h from SIS Austria

Austria, 21.10.09, 09:41GMT+1

Workaround:Disable bitmap full index scan using event 10116.This issue is fixed in 11.2 (Future Release) 10.2.0.4 (Server Patch Set) 11.1.0.7 (Server Patch Set)

, Susanne Mörl




18h later the customer problem is solved

Greece, 21.10.09, 10:29GMT+1

Thank you very much for pointing this bug (6694548) out!

I already asked the customer to upgrade to oracle 10.2.0.4. When they will be ready, I will check if the issue is resolved and post my results here for future reference.

Once again I would like to thank all of you for helping me.

My TechnoWeb2 experience is fantastic and to be honest I didn't expect to find a solution so fast! This is a great tool that was missing from SIS.

, Susanne Mörl






Use-Case 3: cross sector cooperation

Conclusion

Agenda




Within my project activities in medical imaging I need to check some important

questions related to a millimeter precise localization application by RFID. No one here at Healthcare has experience in this

field. Let’s ask the TechnoWeb RFID community.

Concrete Example – Search for Experts

Scientific Staff @ Health ImagingAngiography, Innovative Navigation Concepts

TechnoWeb Network - RFID

, Fabrizio De Pasquale





Within two days, SIS colleagues who have experience on a similar application

offer their expertise






The few days in TechnoWeb 2.0 and in the network RFID have revealed to be

already very fruitful. I exchanged a lot of emails and telephone calls through

Germany and Austria and could clarify a couple of important open questions.

cross-sector business contact is established

SIS D PRO SCM RFID







Conclusion

Agenda




Conclusion

You need a pilot phase.During this pilot phase you can analyze the use-cases which support the business.

Some use-cases emerge from applying the social media tool and were not planned to be use-cases before.

Use-case workshops help to involve the middle management

Use-cases are more compelling than ROI-computations because

the business benefit is not honestly measurable, but

has a lot of indicators

and... (see next page)




Siemens IT Solutions and ServicesSDE KIT

A-1101 Vienna, Gudrunstr. 11Phone +43-5-1707-46560

Twitter: http://twitter.com/heisss

Dr. Michael Heiss

TechnoWeb 2.0 is an initiative of the Siemens Chief Technology Office

RIP 4 ROI:Activate the knowledge which is resting in peace