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
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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
Protection notice / Copyright © Siemens AG 2010. All rights reserved.
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
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Siemens IT Solutions and ServicesDr. Michael Heiss
„All“ business plans look the same...
3 years
time
earnings
Page 5 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
...and one year later, too ;-)
again 3 years
time
earnings
4 years1 year
Why should CEOs trust such business plans?
Page 6 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
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
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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?“
Protection notice / Copyright © Siemens AG 2010. All rights reserved.
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 9 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
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
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Siemens IT Solutions and ServicesDr. Michael Heiss
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
Page 11 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
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
Protection notice / Copyright © Siemens AG 2010. All rights reserved.
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 13 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
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
Protection notice / Copyright © Siemens AG 2010. All rights reserved.
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 15 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
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
Page 16 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
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
Protection notice / Copyright © Siemens AG 2010. All rights reserved.
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
Use-Case 1: Cross selling
Conclusion
Agenda
Page 18 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
The traffic agency of California asks for a cooperation with Siemensfor car-to-X communication
Page 19 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
Tamer and Justinian from CT Princeton do not know about car-to-X communication within Siemens and deny the request.
Page 20 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
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
Page 21 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
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.
Page 22 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
Existing network in TechnoWeb
Herbert isco-moderator
offering
Protection notice / Copyright © Siemens AG 2010. All rights reserved.
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
Use-Case 2: Urgent Request
Conclusion
Agenda
Page 24 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
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
Page 25 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
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
Page 26 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
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
Page 27 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
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
Page 28 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
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
Protection notice / Copyright © Siemens AG 2010. All rights reserved.
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
Use-Case 3: cross sector cooperation
Conclusion
Agenda
Page 30 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
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
Page 31 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
Concrete Example – Search for Experts
Within two days, SIS colleagues who have experience on a similar application
offer their expertise
, Fabrizio De Pasquale
Page 32 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
Concrete Example – Search for Experts
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
, Fabrizio De Pasquale
Protection notice / Copyright © Siemens AG 2010. All rights reserved.
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 34 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
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)
Page 35 January 2010
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Siemens IT Solutions and ServicesDr. Michael Heiss
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