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Service Thinking Historical Case: IBM & Social Business (Fluor, Curam, Brainmates) Team 1 Nurkhat Ibadildin, Roman Osypenko, Soheil Bouzari,, Suman Kukreti, Wynand Goosen.

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Page 1: Ibm project   team1

Service Thinking Historical Case:

IBM & Social Business(Fluor, Curam, Brainmates)

Team 1 Nurkhat Ibadildin, Roman Osypenko, Soheil Bouzari,, Suman

Kukreti, Wynand Goosen.

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Outline

• Slide 1: Title• Slide 2: Outline• Slide 3: Company and Offering– IBM & Social Business• Slide 4: Three Company Summary Table• Slide 5: Company 1: Press Release for IBM-Fluor• Slide 6: Company 1: Service Thinking Analysis• Slide 7: Company 2: Press Release for IBM- Curam• Slide 8: Company 2: Service Thinking Analysis• Slide 9: Company 3: Press Release for IBM-Brainmates• Slide 10: Company 3: Service Thinking Analysis• Slide 11: References and resources used to create case• Slide 12 – N: Backup Slides

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• Company: IBM

o Forbes Global 2000 Rankingo For the fourth year in a row, IBM (NYSE: IBM ) has placed first in

International Data Corp.'s worldwide rankings for market share for enterprise social software.

• Offering: Social Business Systemso Analyst Report on Category of Offeringo Analysis of the strategic partnerships and the right fit in service

thinking.o There is a better way of doing business! o “Businesses move from liking to leading when they look beyond social

media to see how social technologies drive real business value” – IBM

http://www.fool.com/investing/general/2013/04/23/ibm-social-software-ranked-top-market-share-leader.aspx

Company and Offering

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Fluor Curam Brainmates

GIE: Forbes 2000Globally Integrated Enterprise, many customers

Regional:National, State, or City Market, regional customers

Startup:Limited quantity of paying customers

More than $100M Rev/year

About $10M-100M Rev/Year

Less than $10M Rev/Year

Press Release(s) Press Release(s) Press Release(s)

Phrases to map to… Phrases to map to… Phrases to map to…

1 Value Co-Creation 1 Value Co-Creation 1 Value Co-Creation

2 Service System 2 Service System 2 Service System

3 Components 3 Components 3 Components

4 Platform 4 Platform 4 Platform

5 Run-Transform-Innovate

5 Run-Transform-Innovate

5 Run-Transform-Innovate

6 Multi-sided Metrics 6 Multi-sided Metrics 6 Multi-sided Metrics

Impact Rev, Profit, Brand Impact Rev, Profit, Brand Impact Rev, Profit, Brand

Case Summary Table

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Press Release FluorIRVING, TX - 29 Jan 2013: Fluor Corporation(NYSE:FLR), a global leader in engineering, construction and project management is adopting the Social Business platform, created by the world innovation leader IBM(NYSE: IBM). IBM’s platform is resonant with Fluor’s understanding of its position as an service champion in future.

With more than 43,000 employees spread across 60 offices on 6 continents, working on diverse projects, Fluor has a need to integrate the workforce and give them a unique communication platform. This will increase the employee engagement into various projects and unleash their creativity and expertise.  By outsourcing the social business component to IBM, Fluor will continue to specialize on its core business, thus greatly benefiting from the added value, provided by IBM services.  By using the new system, Fluor employees will be able to connect with each other and collaborate on projects even being thousands miles away from each other. This will also give them a possibility to access experts both within Fluor Corporation and from the outside. The cross-platform synchronization will allow to run projects using not only desktops or laptops, but also tablets and smartphones. Fluor workforce will become highly interconnected and mobile.  

The need to have a social business platform for Fluor was dictated by internal and external requirements. Internally Fluor will increase employee engagement and loyalty. By integrating the elements of gamification and utilizing implicit psychological needs of employees, the platform will fully engage them and add an element of interactivity to the core business processes. Externally there will be a shift towards better customer interaction. The project deliverables will be co-elevated to the new quality level. Reducing costs and increasing the service outputs, Fluor will revolutionize the engineering and construction industries, where it successfully operates. Fluor will get to the new level of relationships with its customers, adding an element of customer development to its core values. A new set of metrics and KPI’s will emerge as a result of new platform adoption. This will all end in increased efficiency and revenue and profit growth. 

The partnership with IBM is just a beginning of a transformation of Fluor into a company driven by service dominant logic, professing service thinking principles and looking forward into the future. Fluor is going to adopt new technologies that are consonant with its customers values. “The new social business platform is a start of a huge transformation that we began to better serve our customers. We are building a winning culture. This is a long and thorny path to excellence”, said Ray F. Barnard, Fluor’s Senior VP / CIO.

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Principle Phrases from PR Impact: Revenue, Profit, Brand, etc.

1. Co-Creation

Where does employee’s empowerment come from?

Integrate the workforce; a unique communication platform; increase the employee engagement; shift towards better customer interaction; new level of relationships with its customers

Platform boosts overall effectiveness and operational performance of Fluor, which is reflected in increased employee productivity. IBM improves its product through customer feedback and adds firm specific features which leads to future customer satisfaction, continuing business and improved service output.

2. Service System

What is a shift in resources sharing between provider, customer, and other entities?

Platform is resonant with Fluor’s position; technologies that are consonant with its customers values

Fluor reaches different industries which reinforces its competitive position and sustains its revenues in the long run. IBM gets access to valuable data of interaction between different professionals that can be analyzed and provide a needed flexibility for increasing future profits from multiple industries.

3. Components

What are the reasons for outsourcing?

Fluor will continue to specialize; outsourcing the social business component

This software saves Fluor’s resources for IT which releases necessary funds for investing in prospective projects and improves the bottom line for its shareholders. IBM reinforces its brand as a leading provider of software.

Service Thinking Analysis - Fluor

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Principle Phrases from PR Impact: Revenue, Profit, Brand, etc.

4. Run-Transform-Innovate

Where does the improvement apply?

A beginning of a transformation of Fluor; We are building a winning culture

New system lowers training costs through reducing Fluor’s turnover rate by focusing on people and sustains quality for its challenging projects. New product supports image of IBM as an innovative leader in software industry and improves its competitive advantage and product offering.

5. Platform Global/Mobile/Social

What is the implementation time for deployment of the platform?

Connect with each other and collaborate on projects even being thousands miles away from each other; access experts both within and from the outside

Fluor as a global company needs social platform with global deployment through various mobile devices which improves decision-making and leads to higher profits through completion of projects on time and under budget. IBM can tap into new field of business related to social networks and generate new sources of income.

6. Multi-sided Metrics

What are the new KPIs?

The project deliverables will be co-elevated to the new quality level

Fluor measures employee and customer satisfaction, creativity, project engagement, and retention indexes, IBM can collect data on user activity on specific functions, requested for particular help information, adoption rate among Fluor’s employees so that it can modify its product and price offering.

Service Thinking Analysis - Fluor

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DUBLIN and ARMONK, N.Y., Dec. 5, 2011 /PRNewswire/ -- IBM (NYSE: IBM) has signed a definitive agreement to acquire Curam Software Ltd. to help governments improve the efficiency, effectiveness and accessibility of social programs for smarter cities.  

Curam Software is used in more than 80 government agency projects around the world to provide the most appropriate social programs to citizens and their families in a timely manner, deliver services more effectively and continuously monitor progress toward achieving people's social and economic potential.  The software is used by health and human services, workforce services, and social security organizations around the world to deliver welfare. The Social Industry Platform includes processes to deliver all types of programs and offers the flexibility needed to quickly update them as policy makers react to different economic times.   Curam Software's Platform also allows government and providers to focus on lowering overall program costs by ensuring that the benefits and services provided address core issues and that people become more self-sufficient.

Through its Smarter Cities initiative, IBM helps cities and governments serve citizens better by adopting more intelligent and efficient ways to analyze data, anticipate problems and coordinate resources.   IBM has led more than 2,000 projects to achieve these goals and through its acquisition of Curam Software, IBM expects to extend its leadership in this area. With the addition of the Curam Research Institute -- which is working to develop and deploy new business models for managing social programs -- IBM will enhance its ability to help clients increase the social and economic potential of people and their families.

After the acquisition is completed, Curam Software will be integrated into IBM's Software Group, which is a key driver of growth and profitability for the company

"After 13 years of experience working with IBM, we know our companies are an excellent fit," said John Hearne, CEO, Curam Software.  "Many of our clients already use IBM technologies and services, and they will benefit from working with Curam and IBM as one.  Through IBM's global reach, we can grow our client base by bringing the benefits of Curam's Social Industry Platform to citizens around the world.” 

Press Release Curam

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Principle Phrases from PR Impact: Revenue, Profit, Brand, etc.

1. Co-Creation

e.g., How are customers empowered and engaged?

-”The Social Industry Platform includes processes to deliver all types of programs and offers the flexibility”

-”Smarter Cities Technology Center in Dublin at IBM’s R&D Lab,  where IBM works with city authorities, universities, small and large businesses to research, develop and commercialize new ways of making city systems more connected, sustainable and intelligent.”

-”technical flexibility required to allow agencies to implement solutions to meet their strategic objectives”

More effective way of delivering on social mandate. Better utilization of scarce budgetary resources.

These social systems are helping the cities to be more prepared and flexible to changes in the future.

2. Service System

e.g. What is a shift in resources sharing between provider, customer, and other entities?

-”Cúram Software is used in more than 80 government agency projects around the world to provide the most appropriate social programs to citizens and their families in a timely manner, deliver services more effectively and continuously monitor progress toward achieving people’s social and economic potential.”-”Cúram Software allows cities and governments to provide a single view of benefits and services available across agencies, levels of government and private and not-for-profit organizations.”-”The Social Industry Platform includes processes to deliver all types of programs”

Freeing time of case workers, away from paperwork towards delivery.

Single view of benefits combats wastage and fraud.

Service Thinking Analysis - Curam

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Principle Phrases from PR Impact: Revenue, Profit, Brand, etc.

3. Components

e.g. What are the reasons for outsourcing?

-”Through its Smarter Cities initiative, IBM helps cities and governments serve citizens better by adopting more intelligent and efficient ways to analyze data, anticipate problems and coordinate resources.”

-”With the addition of the Cúram Research Institute -- which is working to develop and deploy new business models for managing social programs -- IBM will enhance its ability to help clients increase the social and economic potential of people and their families.”

IBM extend leadership in this area.

Opportunity 18% p.a. to $57Bln 2014.

The formation of the institute helps IBM to provide the expertise in the social domain of its business.

4. Run-Transform-Innovate

e.g. Where does the improvement apply?

-”Last year the company opened its first Smarter Cities Technology Center in Dublin at IBM’s R&D Lab”

-”We are working to help cities and governments at all levels transform the way they interact with citizens while improving efficiency,”

-”Together with Cúram, IBM can transform the way citizens do business with government in a way that benefits everyone.” 

RTI for both IBM, Curam and client. For IBM/Curam savings in R&D overlap while at same time being more innovative.

Service Thinking Analysis - Curam

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Principle Phrases from PR Impact: Revenue, Profit, Brand, etc.

5. Platform Global/Mobile/Social

e.g. What is the implementation time for deployment of the platform?

-”The Social Industry Platform includes processes to deliver all types of programs and offers the flexibility needed to quickly update them as policy makers react to different economic times.”

”More than 90 percent of Cúram’s clients use IBM WebSphere middleware and nearly 70 percent of its clients use IBM hardware”.

-”Through IBM’s global reach, we can grow our client base by bringing the benefits of Cúram’s Social Industry Platform to citizens around the world.” 

IBM is very global, 170 countries, with wide platform. Its target to involve the whole world in the social industry platform through Curam would take a long time but it also depends on the adaptability of the cities for this platform.

6. Multi-sided Metrics

e.g. What are the new KPIs?

-”series of moves IBM made this year to enhance its offerings for cities and governments.”

-“Cúram Software will be integrated into IBM's Software Group, which is a key driver of growth and profitability for the company.“

-”programs to citizens and their families in a timely manner, deliver services more effectively and continuously monitor progress toward achieving people’s social and economic potential.“

Add value to Smarter Cities initiative.

Increase client base of Curam using IBM clients.

Increase software offering as more types of social business models are added

Service Thinking Analysis - Curam

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Brainmates is a Product Management consulting and training company. They provide contract Product Management services with staff that has practical knowledge of different Product Management methodologies. Brainmates helps companies to strategize, design and deploy products and services.

Social Business can be used by Product Managers in four ways: Monitoring and Listening, Promoting and Sharing, Gathering feedback, Collaborating

Brainmates has published the second edition of our white paper entitled “Collaborative Conversations: Using social media in product management”. We wanted to understand the opportunities and challenges that social media presents to product managers and learn how it is currently being used. We also wanted to unearth the ways in which social media may shape or change the product management role in future.

“Social media provides product managers with an opportunity to join online conversations. This can help in understanding what customers like, what they don’t like, what they want and how they want it. This insight is useful in the design, development and deployment of products.” says Paul Alex Gray, Senior Consultant at Brainmates.

Brainmates announced collaboration with IBM to use their Social Business application, this partnership will allow Brainmates to increase its ability even more in users requirements gathering and increase revenue by targeting the right market. Social Business application also enable more collaboration between Product managers and Product Marketers to have the same understanding about user and buyers needs.

Press Release Brainmates

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Principle Phrases from PR Impact: Revenue, Profit, Brand, etc.

1. Co-Creation

e.g., How are customers empowered and engaged?

Customers’ need and requirement should be the core of new products and services. Brainmates gather information from customer by creating use-cases and user personas to grasp and improve its understanding of market. Also by allowing Product Marketer to collaborate with Product Managers, the final product with meet both User and Buyer requirement and specification.

By eliciting information from end user, potential market and convey them to Product Management team, Brainmates can significantly improve the success of a new product from its design to production and marketing phase.

2. Service System

e.g. What is a shift in resources sharing between provider, customer, and other entities?

Brainmates helps companies to Strategize, design and deploy products and services.

By offering its services, Brainmates can increase its customers efficiency in gathering requirement and Product Design and Development. (Consonance)

Service Thinking Analysis -

Brainmates

3. Components

e.g. What are the reasons for outsourcing?

User Requirement identification and collection, creating use-cases and user personas, analyzing market and identifying new markets for newly developed products, developing marketing strategies

User requirement gathering, Collecting feedbacks, Market research

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Principle Phrases from PR Impact: Revenue, Profit, Brand, etc.

4. Run-Transform-Innovate

e.g. Where does the improvement apply?

As Brainmates organizes regular Product Management, Business Case writing, Stakeholder Relationship and Agile Product Management courses, Brainmates stays on the edge of new concepts and technologies in the field of Product Management methodology. 

A lot of potential costumers were already participated in one of the courses. Brainmates foster and expand its relationship with companies by organizing training courses and also keeps its knowledge and expertise up to date.

5. Platform Global/Mobile/Sociale.g. What is the implementation time for deployment of the platform?

By using Social Business platform, Product Manager who is dealing with user requirement and Product Marketer who focus on buyers can have a similar understanding

The cost of various research is going to decrease as information for a specific market can be accessible from anywhere. Also getting feedback from users is going to be more quicker and easier by using social business.

6. Multi-sided Metricse.g. What are the new KPIs?

End users, Product Managers, Costs and revenue can be measured simultaneously as both Product Manager and Product Marketer perspective is considered.

Service Thinking Analysis -

Brainmates

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Backup Slides

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Flour – Company Details

• Fluor is a global leader in engineering, procurement, construction, maintenance (EPCM), and project management.

• Fluor is a number one choice for clients and governments in completing challenging projects in diverse industries around the world for over a century.

• 43,000 employees. 60 offices on 6 continents. • Market cap of $9.54B.

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Curam – Company DetailsSocial Program Management

IBM Cúram Research Institute

• Fostering the development of innovative service delivery models.•  • The IBM Cúram Research Institute is comprised of experts in social policy

and service delivery reform programs from around the world.•  • The IBM Cúram Research Institute is IBM’s social policy research arm. Its

mission is to foster the development of innovative service delivery models to enable social programs to achieve their desired outcomes of raising the social and economic potential for people and society.

• The research focus is on the crossover from policy to service delivery. 

• Other activities include best practice briefings, special interest workshops and sponsorship of key industry initiatives.

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• Based on Australian industry report (March 12th 2013) “The biggest skill shortage in digital space is Product Manager”.

• Brainmates is a Product Management consulting and training company.

• Brainmates provides contract Product Management services with staff that has practical knowledge of different Product Management methodologies.

• Brainmates helps companies to strategize, design and deploy products and services.

Brainmates – Company Details

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• URLS to web accessible information resources• http://newsroom.fluor.com/news-releases• http://

www.fluor.com/about_fluor/corporate_information/Pages/profile.aspx

• http://www.forbes.com/companies/fluor/• http://

www-03.ibm.com/press/us/en/pressrelease/40217.wss• http://www.fluor.com/SiteCollectionDocuments

/fluor-corp-profile-english-a4.pdf• Academic References (Google Scholar Citations)• Analyst Reports on Industries, Businesses, Offering

Categories, etc.• Interviews and other sources

References - Fluor

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• URLS to web accessible information resources• http://www.youtube.com/watch?v=sWc-XJKidho• http://en.wikipedia.org/wiki/C%C3%BAram_Software• http://www-01.ibm.com/software/city-operations/curam-sof

tware/

• http://www-03.ibm.com/press/us/en/pressrelease/36134.wss

• Academic References (Google Scholar Citations)• Analyst Reports on Industries, Businesses, Offering

Categories, etc.• Interviews and other sources

References - Curam

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Brainmates