Collaborative Strategy Guild » IBM Lotus

IBM’s Social Business Gambit – What do I think?

Karen Hobert — Thu, 02 Feb 2012 20:37:00 +0000

In my last post I outlined what I consider IBM’s Social Business gambit coming out of the Lotusphere/Connect 2012 conference this month. But I really didn't get into my opinions whether I think it will work. So, here goes...

Am I buying it?

Yes, the message. The IBM Social Business gambit and re-brand away from the Lotus marque is primarily a marketing message. Overall IBM clearly articulated and streamlined its message on the communications/collaboration tools market. I think this is a very good start. Quite frankly, given the current market and competition, it’s about the only option IBM had. The good news is that they are doing it.

To expand, IBM’s Social Business market strategy is a re-tooled perspective on where communications/collaboration has been heading for a long time. Bottom-line, the problems we trying to solve are not new; just there’s new technology to help us get things done. As Linda Stone explains we be been moving through evolutionary phases of technology changing how we work. Right now were evolving towards understanding our information by being able to use it more effectively:

Today, we are Knowledge Workers evolving into Understanding Workers. Understanding Workers use technology to anticipate, judge and act.

This idea fits nicely with Sir Tim Berners-Lee’s Lotusphere keynote in which he spoke about being on the cusp of the semantic web. Longstanding technology that has served us well is fraying at the edges in a continually connected, multi- device, big data working world. Information management is going from find-ability to connect-ability.

The problem for most enterprises is how to provide for Understanding Workers and what it means operationally. That’s what IBM is attempting to address by shifting the conversation to Social Business and away from why e-mail stinks. Changing the topic reboots the conversation and refocuses the issues to the cultural shift that enterprises need to go through to get to the other side. So am I buying the changed conversation and the idea of the social business? Yes.

Will companies buy it?

Hard to say, but customers are looking for innovation, and that usually is a new conversation even if the problem is the same. Social software solutions are not streamlined today, although many are coming closer (e.g., Salesforce.com) or are well enabled to do so (e.g., Jive’s December 2011 $120M IPO). But just when the business begins to take an active interest in the technological culture of the firm, the way workers access information and each other has exploded into a complex matrix of devices, technologies, and solutions.

Delivering a reassuring message about how IBM understands enterprise issues and providing understandable approaches to new technology complexities offer customers a sound starting point. IBM has got to feel confident about it, and it’s clear that they do.

However, it is a guarded IBM installed-based that IBM is running this by first. A market message is only good if it garners interest; the success of a strategy is in the technology execution and delivery. Redefining the conversation and demonstrating what life might be like only goes so far. Success depends on whether or not customers can comfortably replicate the experience being demonstrated to them.

Will IBM win?

They way I see it, IBM has three hurdles to clear in order for the social business gambit to pay off:

1. Technology delivery

2. Market disruption

3. New competitors

Proof of the technology is in the execution. IBM needs to stay the course and execute its technology and delivery well. I didn't get to see the technical presentations at Lotusphere/Connect 2012. Combine that with IBMs increasing coyness to reveal the inner workings of its technology and it's hard to for me honestly evaluate whether the technology is sound. Given IBMs performance over the last 4 years I am cautiously optimistic.

In its last major communications/collaboration software change-up IBM effectively sold the message of a new beginning to many customers. The long awaited Domino 8.0 and the Eclipse-based client (delivered in August 2007) provided a B12 perception booster for customers eagerly awaiting improvements to a haggard code-base. The message worked, staving off customer defections temporarily, but the technology of the updated system was not as promised. This caused a lot of buyer’s remorse and IBM struggling to keep its customer-base intact.

Even the die hard, bleed yellow folks were exasperated. Attributed by some to the offshoring of development and the decimation of the US development and QA, the execution of the early Notes/Domino 8.0.x code stream opened the doors for competitors and other IBM Lotus technologies (i.e., Connections) to swoop in and displace the Lotus crown jewels. Note, general consensus is that the 8.5 release of Notes/Domino at the end of 2008 was much more stable as are subsequent releases, most recently version 8.5.3 released in October 2011.

More recently IBM has placed its marketing focus on the front end and user experience of its communication/collaboration tools. This approach has been successful in capturing the attention of the business buyers, however, the once-bitten, twice shy effect of unrealized Domino 8.0 promises has left a degree of skepticism in customer’s minds that IBM continues to contend with.

Which comes to market disruption. A frustrated customer-base makes for easy fishing by competitors, and both Microsoft and Google have been casting long lines with varying success. For IBM to succeed it needs to be disruptive enough not only to stop this feeding frenzy and but also for its competitors to stop writing IBM off. IBM needs to make it a goal to get its competitor’s sales reps to start complaining about IBM disruption.

On the one hand IBM could simply write off the likes of Cisco, Google, Microsoft and Oracle as being behind the social times, however that would be short-sighted since these business have large customer bases in other areas that can be leveraged for new technologies, no matter how passé their messages seem.

It’s not only the usual suspects that comprise the social IT market. IBM, by changing the discussion, wittingly or not, jumped into a competitive pool that includes a new breed of providers. In addition to the known entities, IBM will need to fend off a variety of social software sharks including, Jive, SocialText, Salesforce.com, and Yammer.

The competition boils down to gaining the attention of customers – existing and new - enough to be disruptive. With this many players the market share will be diluted until acquisitions and dropouts consolidate the market place. Until then IBM will need to gain the attention of customers that have lots of choices and little (for now) internal direction on where to go.

Final words

Overall my analysis is, it depends. It depends on what IBM can and will deliver. It depends on whether or not IBM can become disruptive enough to gain new customers in a crowded market place. It depends on if IBM can compete against a new breed of competitor.

Ok, pretty wishy-washy, but here’s what I will say. IBM’s Social Business message is a good start to driving the mindset of the market, and if IBM manages to get it to trickle into its sales and development ranks, then IBM is on the right path to restoring customer confidence and sparking innovation. Since the social market is hardly a vacuum these days, IBM will need to get more down and dirty to influence things. Although I am doubtful about the likelihood of IBM doing this, a couple strategic acquisitions would go a long way to thinning the competition and is likely to gain customer confidence in IBM’s commitment to social business.

I predict that IBM will succeed in attracting business buyer interest with its Social Business message but it will likely stumble on the same hurdles that have challenged IBM in the past, including staying on message throughout the IBM organization; a cultural shift that IBM has yet to accomplish.

IBM’s Social Business Gambit

Karen Hobert — Wed, 25 Jan 2012 21:34:00 +0000

Although I did not attend the IBM Lotusphere 2012 and Connect 2012 events in Orlando last week, I managed to wake up early enough (I'm in California) to watch the Opening General Session (OGS) and Keynote live-streams. These main "messaging" sessions are IBM's opportunity to tell its customer and partner base how it sees the current communication/collaboration/productivity IT market and what IBM plans to do about it. Largely the message includes a resolute - and not unexpected - re-branding strategy that shifts the discussion away from old themes to contemporary technology for business trends. Once again IBM is trying to keep at the front of the Business IT pack with the hope of driving the market and minds of business buyers. The idea is to start a new game, Social Business, and 2012 is the season opening.

The Gambit

gam·bit (gmbt)
n.
1. An opening in chess in which a minor piece, or pieces, usually a pawn, is offered in exchange for a favorable position.
2. A maneuver, stratagem, or ploy, especially one used at an initial stage.
3. A remark intended to open a conversation.

It's clear that IBM has spent a lot of time considering its Social Business marketing strategy and how to dovetail a re-branding of the increasingly thread-worn Lotus marque. That consideration is showing up as a more focused IBM that is betting on a branding trifecta:

Social: more seamless integration of social tools with productivity tools and enterprise information
Mobile: consistent access and experience on different devices
Connect: information and people through a range of communication and collaboration experience

Not only is this a message customers (i.e., buyers) can hang their hat on, but it's competitively targeted at IBM's rival's weaknesses. This is most evident when looking at Microsoft's 2011 strategy that has been marked by an anemic social message, the inability to disrupt the mobile market (although WM 7.5 is getting some good press traction), and siloed productivity tools.

IBM's gambit includes the sacrificing of the Lotus brand; although not dead yet, it's been relegated to the back-seat with IBM Connections at the driver's seat. Notes Mail, Quickr, and Domino applications are now playing second fiddle to Social Messaging, Content Analytics, and XPages in the IBM Social Business strategy. It's as if IBM went to the spa and came out looking like a teenager.

This isn't all bad but the proof obviously comes in how the strategy attracts customers and if the follow-through and technology meet IBM's ambition. As one attendee tweeted during the OGS: "The geek aspect of all this is great. But will non-geeks embrace the cultural implications of all this?" (@duffbert).

Raising Bars
No matter though, IBM is confident. The teenage awkwardness we've seen at previous Lotuspheres has moved into young adulthood. Although there were some rocky moments - especially around the Websphere versus everything else message - this is not the clumsy and seemingly confused IBM of the past. IBM raised many bars at this year's events that are likely to have a bolstering impact on its customer and partner base. Overall the quality level of the streamed sessions was a step up from events over the last several years.

I am pleased that IBM finally invested in live streaming of important sessions. The insular, "you gotta be here to get it" attitude, was quite frankly insulting, especially coming from a company that sold communications products. It's as if IBM really got what it means to be social. Not only that but also the quality of the IBM web sites for Lotusphere and Connect were easy to navigate and use.

IBM also brought in A-list guest speakers. Instead of parading in partner and customer honchos, although there were some, IBM also invited key industry thinkers and figures such as Sir Tim Berners-Lee, Guy Kawasaki, Manoj Saxsena (OK he's IBM but it's Watson), Bill Taylor (FAST Company). These talks gave the event a world-class feeling with TED-style lectures that inspired discussion on how new technology in business is changing how we do our work.

Lastly, as always, the IBM press and analyst team worked the media. And although there was the usual coverage with press announcements, twittering, and blog posts (ah hem), IBM managed to also get some well-timed ink with attention grabbing headlines, such as: "IBM Gives Birth to the Amazing E-mail-less Man*" (Wired) and "SharePoint is a 'document coffin,' says IBM"(Computerworld).

Game On
In the IBM realm it's "Game On!" challenging competitors to join the scrimmage with IBM's new rules. Now let's see how, or if, IBM's competitors join or if they will start or continue their own game. In competitor's circles IBM Lotus customers have become installed base point fodder as they compete among themselves. Now that the new game has begun IBM needs to stay the course and make sure it delivers quality technology that will strengthen and grow its fan base. Should IBM catch the attention of business customers and revive ties to the IBM brands enough to unsteady the competition then the Social Business gambit may be just what IBM needed.

*Although it's really not true, more like the "amazing e-mail emancipated man"

Mitigating Risk and Finding Opportunity in Software as a Service (SaaS) E-mail for Small and Medium Businesses

Karen Hobert — Mon, 18 Jan 2010 18:47:40 +0000

Announcing the latest CSG publication, “Mitigating Risk and Finding Opportunity in Software as a Service E-mail for Small and Medium Businesses.” You can download the white paper here or go to our Research page.

Software as a Service (SaaS) e-mail offerings provide some operational productivity benefits at lower prices, although it is not a silver bullet, and should not be considered a compromise to existing solutions. SaaS e-mail service bundles can provide capabilities not previously available with existing e-mail solutions especially with operational aspects of managing an e-mail infrastructure. Although total cost of ownership (TCO) is a leading driver for choosing SaaS e-mail, customers should approach SaaS e-mail options based on how the solution will improve the e-mail experience and increase user and operational productivity as well as mitigate risks.

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