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A smart, business intelligence tool detecting micro-
trends and driving business success by transforming
social media into strategy
IBM Watson Seismic
3
OUR TEAM
HELLO
Zamzam Asmar - business management
Keriann Kozub - marketing
Fadhel Maina - finance
Lotus Mendoza - project management
Elisabeth Middlemas - communications and media
Sandeep Vete - innovation and design thinking
THE AGENDA
4
THE PROPOSALOPPORTUNITY HOW IT WORKS GO TO MARKET FINANCIALS
1 2 3 4 5
THE OPPORTUNITY
BIG DATA, BIG TRENDS, BIG CONFUSION
5
1
“ THE ABILITY TO GATHER INFORMATION,
WHICH USED TO BE SO CRUCIAL, IS NOW
FAR LESS IMPORTANT THAN THE ABILITY TO
SIFT THROUGH IT
- PICO LYER
The average billion dollar company spends
$750k / year on social media
Yet 68% of CEOs feel like they are
experimenting
By 2016, global social network and ad spend
is expected to reach $26bn
SOCIAL MEDIA – JUST THE TIP OF THE ICEBERG
I ONLY SEE WHAT I LOOK FOR
Hundreds of hours of content
are created each minute online.
8
Social media has grown exponentially
over the past 10 years, from 8% Internet
users in 2005 to 72% in 2013.
There are not enough resources in companies to gather the
data, and even if there were they do not know what to
measure or how to interpret the results.
This is where customer interaction
will take place tomorrow – those who
understand how to use it will become
the leaders.
FROM CONFUSION TO LEADERSHIP STRATEGY
9
CONFUSION COLLECTION COMPREHENSION STRATEGY
How can Watson provide unique value in solving
these major pain-points facing businesses today
and help them lead?
10
PROPOSAL AND STRATEGY
A SEAMLESS FIT INTO IBMs BUSINESS MODEL
2
WATSONS COGNITIVE ABILITIES UNIQUELY POSITION IT
ROI
Integration of company specific ROI
measurements.
ZOOM
Ability to zoom in on micro-
trends like an always-on
global focus group.
REAL TIME
Ability to provide real-time
analysis and actionable
recommendations.
LEARNING THE CLIENT
Ability to fully integrate the
business, learning each customer’s
unique values and drivers.
INTELLIGENCE
Ability to understand natural language:
Analyzing what people are actually
saying, not an algorithmic version of
that sentiment.
NO LIMITS INTERPRETATION
Ability to interpret unstructured and
non-text data.
Watson’s cognitive abilities, set it apart from any other product or
service on the market today.
A ONE STOP SHOP AT YOUR FINGER TIPS
12
SOCIAL MEDIA
ANALYTICS
BIG DATA
ANALYTICS
COMPANY
STRATEGY
COMPANY
RESOURCES
BUSINESS
METRICS
WATSON SEISMIC
DELIVERING
HIGH VALUE
Seismic provides users with
unprecedented real-time
visibility of the issues they care
about most.
From the macro (highlighting
business critical online
events/opportunities) to the
micro (zooming in on regions,
campaigns, products, threats
and trends).
Measuring for the first time
the ROI of social media and
tying it to business drivers.
Seismic represents a more
powerful version of IBM’s
current framework.
• Social media analytic data
in real time
• Making recommendations
with its cognitive abilities.
• The more seismic learns
about the company, the
more valuable it becomes.
• Fits into current IBM
structures / teams
A software-as-service solution, positioned as an ‘upgrade’ to existing IBM Social Media Analytics
and consulting clients and needing limited upfront investment.
SEAMLESS INTEGRATION INTO IBMs CURRENT BUSINESS
14
HOW IT WORKS
STEP BY STEP
3
ON THE PULSE OF THE WORLD
15
Impacts of regional events,
policies, news…
REGIONAL MARKET INFO
Capitalizing on local,
regional, global trends first
TRENDS
Proactive risk management
POTENTIAL ISSUES
From a multitude of
media sources
GLOBAL MEDIA
Cutting through all
the noise
SOCIAL MEDIA
Flanking the competition,
following their actions
and impacts in the
market.
COMPETITORS
INTERFACING WITH INTERNAL AND EXTERNAL DATA
16DRIVING LONGTERM, INITIMATE CUSTOMER RELATIONSHIPS - AVERAGE OF 5 YEARS.
A LEARNING ECOSYSTEM
more powerful everyday.
A CORPORATE MEMORY
Intrinsic to its clients’ social media, marketing and even operational strategies.
17
EASY TO READ
REPORTS
OPTIMIZING STRATEGY IN REAL TIME – FROM
ANYWHERE
FAR REACHING OPPORTUNITIES INTO OTHER AREAS OF THE BUSINESS
18
THIS SYSTEM ULTIMATELY CAN BE TIED INTO AND HELP SELL MANY OTHER
IBM COGNITIVE BUSINESS PRODUCTS
SAY HELLO TO SEISMIC
Hult Impact Challenge - IBM Watson Seismic
21
GO TO MARKET
MARKETS AND CUSTOMERS
4
22
FIELD RESEARCH
"We use upwards of
five tools daily. None
are great, none do
everything."
Director of Social Media
Birchbox, New York, US
"A tool that can analyze
semantics accurately and
efficiently will be a 'holy
grail’ for marketers.”
Director of Digital Marketing
Havas, Middle East
"We would switch away from
our current provider if there
was a better solution that
was more intuitive and cut
down the man hours."
UK based Corporate Affairs
Manager
THE USE VALUE - KEY DIFFERENTIATORS FOR SEISMIC
23
OUR RESEARCH SHOWS POTENTIAL CLIENTS ARE MOTIVATED BY 3 KEY MESSAGES
1 2 3
Cognitive power to
understand micro-
trends faster than is
humanly possible
Knows your business
better than any individual
can
Cuts man-hour
costs and drives
efficiency
BUILDING UP THE CORE SEGMENTS
24
CMOs of major corporates
with global reach or
ambition: initially targeting
Hospitality, Consumer
Goods and Aviation
CORE SEGMENT
Expand to major marketing,
social media and
communications consultancies
EXTENDED SEGMENT
Large B2C
multi-nationals
Annual social media
spend exceeding $100k
Manage their social
media on both global
and local levels
Virtual blind spots make
them particularly
“vulnerable” to social media
HELLO DUBAI
WHY HERE , WHY NOW
25
26
WATSONs UNIQUE VALUE
PROPOSITION
DUBAI IS READY AND WAITING
IBMs CURRENT BUSINESSIBM EXPERTISE
THE RIGHT
MARKET
RIGHT
PRODUCT
28
GO TO MARKET
SALES AND PRICING
4
MARKETING STRATEGY
29
As our core target customers are CMOs, C-Suite
executives and senior marketing professionals,
outreach will be highly targeted and built on a
thought-leadership approach.
THOUGHT
LEADERSHIP
showcases Watson Seismic’s cognitive ability
through social media, authored articles in business
publications, white papers, and events
BUILD WATSON SEISMIC AS A PERSONALITY
World Economic Forum, TED talks
HIGH PROFILE PARTNERSHIPS
A 3 PHASED LAUNCH
30
2017 2018 2019 2020 20212016
Grow the Dubai
market through
successful
implementation
projects with early
adopters and
promoting them.
Launch Watson
Seismic in Dubai,
targeting existing
IBM customers.
Expand reach
through case
studies,
targeting the
early majority.
Setup regional
operating
headquarters
based on early
adopters
strategy.
Implement tailored
solutions for early
adopters of
marketing agencies
Tailor Watson
Seismic to enable
marketing agencies
to use Watson’s
capability for their
broad client bases.
PHASE 1: DUBAI PHASE 2: GLOBAL ROLL-OUT PHASE 3: MARKET EXTENSION
PRICING STRATEGY
Two factors determine the pricing of Watson Seismic:
1 2
Level of functionality Geographic reach
PRICING - LEVEL OF FUNCTIONALITY
32
Functionality level based on client motivation:
1. Basic: “drive efficiency”
2. Intermediate: “control and monitor”
3. Premium: “drive business growth”
BASIC
Up to 10 users
1 brand tracked
2 competitors monitored
$ 81,101
Implementation fees
PREMIUM
Up to 50 users
Unlimited brands tracked
Unlimited competitors monitored
E-mail integration
CRM/ERP Integration
INTERMEDIATE
Up to 30 users
5 brands tracked
5 competitors monitored
E-mail integration
$ 162,202
Implementation fees
$ 22,000 / year
Bespoke
offerings
drive even
higher value
Strategic Analysis & Creative
Direction
Workflow management
$ 32,000 / year $ 42,000 / year
$ 324,403
Implementation fees
All 3 offers include multilingual support, cloud hosting, Social & online media monitoring and market insights
PRICING – GEOGRAPHIC PACKAGES
33
Northern
America &
Caribbean
Central
& South
America
Europe
Middle
East &
Africa
Asia
Pacific
THREE CONTRACT OPTIONS:
 Country
 Regional
 Worldwide
BASIC
$ 792,000
PREMIUM
$ 1,512,000
INTERMEDIATE
$ 1,152,000
Seismic’s solutions are packaged to accommodate
geographic monitoring requirements on a country,
regional and global level.
Worldwide
Regional
Country
$ 264,000 $ 384,000 $ 504,000
$ 22,000 $ 42,000$ 32,000
FINANCIALS
WHAT DOES IT DO FOR THE BOTTOM LINE?
34
5
Total Market Potential
Market
Accessible
Market
Realistic
Market
627 150 100 19X 24% X 68% X 20%
FUNNELING DOWN TO A REALISTIC MARKETSHARE based on offerings / switching
3 Target
Industries
- Consumer Goods
- Aviation
- Hospitality
Current market share for
CRM solutions between
SAP, Microsoft, Oracle and
IBM 1
% of CMO’s unsatisfied with
their current social media
analysis tool 2
Customers for
whom we meet
the minimal
requirements
Customers willing
to switch to a
new product
Customers willing
to switch to
SEISMIC
Early adoption percentage +
marketing effort 3
References
1 - http://www.forbes.com/sites/louiscolumbus/2014/05/06/gartners-crm-market-share-update-shows-41-of-crm-systems-are-saas-based-with-salesforce-dominating-market-growth/
http://www.microstrategy.com/us/about-us/analyst-reviews/gartner-magic-quadrant
2- http://www.socialmediaexaminer.com/SocialMediaMarketingIndustryReport2014.pdf
3- http://www.ou.edu/deptcomm/dodjcc/groups/99A2/theories.htm
PROJECTED CUSTOMER GROWTH – 5 YEAR
36
0
20
40
60
80
100
120
140
0 1 2 3 4 5 6
Country licences Regional licences
Worldwide licences New service contracts
By year 5, up to
140 country,
17 regional and
13 worldwide
licenses
FREE CASH FLOW PROJECTIONS
37
-2
0
2
4
6
8
10
12
14
0 1 2 3 4 5 6
Millions
Free Cash flows
NPV
$13,043,735
38
THANK YOU
QUESTIONS?
APPENDIX
GROWTH AND INNOVATION IN A COMPETITIVE MARKET
WATSON SEISMICS USP = FIRST TURNKEY SOLUTION THAT CAN TAKE ON CONSULTING +
PROVIDE THE DATA / ANALYTICS IN REAL TIME
Integrated Business
Intelligence solutions
Strategy, media &
brand consultancies
High
cost
Low
cost
Full serviceNiche players
• SAS
• Google Analytics
• Hootsuit
• IBM
Specialized social media
management
Digital customer
experience
• TrustYou
• Hubspot
• MediaWatch
• Meltwater
• Cision
• Trackur
• Durrants
• Millward Brown
• McKinsey
• Kantar Group
• Brandwatch
• Tweetreach
• Moz Analytics
• SproutSocial
• Topsy
• Bain
• Webtrends
• Klout
• Crowdbooster
• Salesforce
• Deloitte
• SAP
• Oracle
• Microsoft Dynamics
• Havas Digital
• Publicis
• Good Data
MARKETING STRATEGY - BUILDING PERSONAL RELATIONSHIPS TO SELL A PERSONALITY!
41
EXISTING IBM
CUSTOMERS
Will take the advantage of IBM
current customer base to push our
product initially in the market
Those customers will become our
reference to other
BUILD NEW
RELATIONSHIPS
By understanding the companies
problems will be able to offer
them the best solution
Meeting new customers in
conferences and big technology
exhibitions
DEMOS AND FREE TRIAL
Offer a secured free trial period of
two months for our key clients
In business conferences, we will be
showing a demo of Seismic
Upsell current
customer base
Create new reference
clients
Broaden customer
base

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Hult Impact Challenge - IBM Watson Seismic

  • 1. 1
  • 2. A smart, business intelligence tool detecting micro- trends and driving business success by transforming social media into strategy IBM Watson Seismic
  • 3. 3 OUR TEAM HELLO Zamzam Asmar - business management Keriann Kozub - marketing Fadhel Maina - finance Lotus Mendoza - project management Elisabeth Middlemas - communications and media Sandeep Vete - innovation and design thinking
  • 4. THE AGENDA 4 THE PROPOSALOPPORTUNITY HOW IT WORKS GO TO MARKET FINANCIALS 1 2 3 4 5
  • 5. THE OPPORTUNITY BIG DATA, BIG TRENDS, BIG CONFUSION 5 1
  • 6. “ THE ABILITY TO GATHER INFORMATION, WHICH USED TO BE SO CRUCIAL, IS NOW FAR LESS IMPORTANT THAN THE ABILITY TO SIFT THROUGH IT - PICO LYER
  • 7. The average billion dollar company spends $750k / year on social media Yet 68% of CEOs feel like they are experimenting By 2016, global social network and ad spend is expected to reach $26bn
  • 8. SOCIAL MEDIA – JUST THE TIP OF THE ICEBERG I ONLY SEE WHAT I LOOK FOR Hundreds of hours of content are created each minute online. 8 Social media has grown exponentially over the past 10 years, from 8% Internet users in 2005 to 72% in 2013. There are not enough resources in companies to gather the data, and even if there were they do not know what to measure or how to interpret the results. This is where customer interaction will take place tomorrow – those who understand how to use it will become the leaders.
  • 9. FROM CONFUSION TO LEADERSHIP STRATEGY 9 CONFUSION COLLECTION COMPREHENSION STRATEGY How can Watson provide unique value in solving these major pain-points facing businesses today and help them lead?
  • 10. 10 PROPOSAL AND STRATEGY A SEAMLESS FIT INTO IBMs BUSINESS MODEL 2
  • 11. WATSONS COGNITIVE ABILITIES UNIQUELY POSITION IT ROI Integration of company specific ROI measurements. ZOOM Ability to zoom in on micro- trends like an always-on global focus group. REAL TIME Ability to provide real-time analysis and actionable recommendations. LEARNING THE CLIENT Ability to fully integrate the business, learning each customer’s unique values and drivers. INTELLIGENCE Ability to understand natural language: Analyzing what people are actually saying, not an algorithmic version of that sentiment. NO LIMITS INTERPRETATION Ability to interpret unstructured and non-text data. Watson’s cognitive abilities, set it apart from any other product or service on the market today.
  • 12. A ONE STOP SHOP AT YOUR FINGER TIPS 12 SOCIAL MEDIA ANALYTICS BIG DATA ANALYTICS COMPANY STRATEGY COMPANY RESOURCES BUSINESS METRICS WATSON SEISMIC DELIVERING HIGH VALUE Seismic provides users with unprecedented real-time visibility of the issues they care about most. From the macro (highlighting business critical online events/opportunities) to the micro (zooming in on regions, campaigns, products, threats and trends). Measuring for the first time the ROI of social media and tying it to business drivers.
  • 13. Seismic represents a more powerful version of IBM’s current framework. • Social media analytic data in real time • Making recommendations with its cognitive abilities. • The more seismic learns about the company, the more valuable it becomes. • Fits into current IBM structures / teams A software-as-service solution, positioned as an ‘upgrade’ to existing IBM Social Media Analytics and consulting clients and needing limited upfront investment. SEAMLESS INTEGRATION INTO IBMs CURRENT BUSINESS
  • 14. 14 HOW IT WORKS STEP BY STEP 3
  • 15. ON THE PULSE OF THE WORLD 15 Impacts of regional events, policies, news… REGIONAL MARKET INFO Capitalizing on local, regional, global trends first TRENDS Proactive risk management POTENTIAL ISSUES From a multitude of media sources GLOBAL MEDIA Cutting through all the noise SOCIAL MEDIA Flanking the competition, following their actions and impacts in the market. COMPETITORS
  • 16. INTERFACING WITH INTERNAL AND EXTERNAL DATA 16DRIVING LONGTERM, INITIMATE CUSTOMER RELATIONSHIPS - AVERAGE OF 5 YEARS. A LEARNING ECOSYSTEM more powerful everyday. A CORPORATE MEMORY Intrinsic to its clients’ social media, marketing and even operational strategies.
  • 17. 17 EASY TO READ REPORTS OPTIMIZING STRATEGY IN REAL TIME – FROM ANYWHERE
  • 18. FAR REACHING OPPORTUNITIES INTO OTHER AREAS OF THE BUSINESS 18 THIS SYSTEM ULTIMATELY CAN BE TIED INTO AND HELP SELL MANY OTHER IBM COGNITIVE BUSINESS PRODUCTS
  • 19. SAY HELLO TO SEISMIC
  • 21. 21 GO TO MARKET MARKETS AND CUSTOMERS 4
  • 22. 22 FIELD RESEARCH "We use upwards of five tools daily. None are great, none do everything." Director of Social Media Birchbox, New York, US "A tool that can analyze semantics accurately and efficiently will be a 'holy grail’ for marketers.” Director of Digital Marketing Havas, Middle East "We would switch away from our current provider if there was a better solution that was more intuitive and cut down the man hours." UK based Corporate Affairs Manager
  • 23. THE USE VALUE - KEY DIFFERENTIATORS FOR SEISMIC 23 OUR RESEARCH SHOWS POTENTIAL CLIENTS ARE MOTIVATED BY 3 KEY MESSAGES 1 2 3 Cognitive power to understand micro- trends faster than is humanly possible Knows your business better than any individual can Cuts man-hour costs and drives efficiency
  • 24. BUILDING UP THE CORE SEGMENTS 24 CMOs of major corporates with global reach or ambition: initially targeting Hospitality, Consumer Goods and Aviation CORE SEGMENT Expand to major marketing, social media and communications consultancies EXTENDED SEGMENT Large B2C multi-nationals Annual social media spend exceeding $100k Manage their social media on both global and local levels Virtual blind spots make them particularly “vulnerable” to social media
  • 25. HELLO DUBAI WHY HERE , WHY NOW 25
  • 26. 26
  • 27. WATSONs UNIQUE VALUE PROPOSITION DUBAI IS READY AND WAITING IBMs CURRENT BUSINESSIBM EXPERTISE THE RIGHT MARKET RIGHT PRODUCT
  • 28. 28 GO TO MARKET SALES AND PRICING 4
  • 29. MARKETING STRATEGY 29 As our core target customers are CMOs, C-Suite executives and senior marketing professionals, outreach will be highly targeted and built on a thought-leadership approach. THOUGHT LEADERSHIP showcases Watson Seismic’s cognitive ability through social media, authored articles in business publications, white papers, and events BUILD WATSON SEISMIC AS A PERSONALITY World Economic Forum, TED talks HIGH PROFILE PARTNERSHIPS
  • 30. A 3 PHASED LAUNCH 30 2017 2018 2019 2020 20212016 Grow the Dubai market through successful implementation projects with early adopters and promoting them. Launch Watson Seismic in Dubai, targeting existing IBM customers. Expand reach through case studies, targeting the early majority. Setup regional operating headquarters based on early adopters strategy. Implement tailored solutions for early adopters of marketing agencies Tailor Watson Seismic to enable marketing agencies to use Watson’s capability for their broad client bases. PHASE 1: DUBAI PHASE 2: GLOBAL ROLL-OUT PHASE 3: MARKET EXTENSION
  • 31. PRICING STRATEGY Two factors determine the pricing of Watson Seismic: 1 2 Level of functionality Geographic reach
  • 32. PRICING - LEVEL OF FUNCTIONALITY 32 Functionality level based on client motivation: 1. Basic: “drive efficiency” 2. Intermediate: “control and monitor” 3. Premium: “drive business growth” BASIC Up to 10 users 1 brand tracked 2 competitors monitored $ 81,101 Implementation fees PREMIUM Up to 50 users Unlimited brands tracked Unlimited competitors monitored E-mail integration CRM/ERP Integration INTERMEDIATE Up to 30 users 5 brands tracked 5 competitors monitored E-mail integration $ 162,202 Implementation fees $ 22,000 / year Bespoke offerings drive even higher value Strategic Analysis & Creative Direction Workflow management $ 32,000 / year $ 42,000 / year $ 324,403 Implementation fees All 3 offers include multilingual support, cloud hosting, Social & online media monitoring and market insights
  • 33. PRICING – GEOGRAPHIC PACKAGES 33 Northern America & Caribbean Central & South America Europe Middle East & Africa Asia Pacific THREE CONTRACT OPTIONS:  Country  Regional  Worldwide BASIC $ 792,000 PREMIUM $ 1,512,000 INTERMEDIATE $ 1,152,000 Seismic’s solutions are packaged to accommodate geographic monitoring requirements on a country, regional and global level. Worldwide Regional Country $ 264,000 $ 384,000 $ 504,000 $ 22,000 $ 42,000$ 32,000
  • 34. FINANCIALS WHAT DOES IT DO FOR THE BOTTOM LINE? 34 5
  • 35. Total Market Potential Market Accessible Market Realistic Market 627 150 100 19X 24% X 68% X 20% FUNNELING DOWN TO A REALISTIC MARKETSHARE based on offerings / switching 3 Target Industries - Consumer Goods - Aviation - Hospitality Current market share for CRM solutions between SAP, Microsoft, Oracle and IBM 1 % of CMO’s unsatisfied with their current social media analysis tool 2 Customers for whom we meet the minimal requirements Customers willing to switch to a new product Customers willing to switch to SEISMIC Early adoption percentage + marketing effort 3 References 1 - http://www.forbes.com/sites/louiscolumbus/2014/05/06/gartners-crm-market-share-update-shows-41-of-crm-systems-are-saas-based-with-salesforce-dominating-market-growth/ http://www.microstrategy.com/us/about-us/analyst-reviews/gartner-magic-quadrant 2- http://www.socialmediaexaminer.com/SocialMediaMarketingIndustryReport2014.pdf 3- http://www.ou.edu/deptcomm/dodjcc/groups/99A2/theories.htm
  • 36. PROJECTED CUSTOMER GROWTH – 5 YEAR 36 0 20 40 60 80 100 120 140 0 1 2 3 4 5 6 Country licences Regional licences Worldwide licences New service contracts By year 5, up to 140 country, 17 regional and 13 worldwide licenses
  • 37. FREE CASH FLOW PROJECTIONS 37 -2 0 2 4 6 8 10 12 14 0 1 2 3 4 5 6 Millions Free Cash flows NPV $13,043,735
  • 40. GROWTH AND INNOVATION IN A COMPETITIVE MARKET WATSON SEISMICS USP = FIRST TURNKEY SOLUTION THAT CAN TAKE ON CONSULTING + PROVIDE THE DATA / ANALYTICS IN REAL TIME Integrated Business Intelligence solutions Strategy, media & brand consultancies High cost Low cost Full serviceNiche players • SAS • Google Analytics • Hootsuit • IBM Specialized social media management Digital customer experience • TrustYou • Hubspot • MediaWatch • Meltwater • Cision • Trackur • Durrants • Millward Brown • McKinsey • Kantar Group • Brandwatch • Tweetreach • Moz Analytics • SproutSocial • Topsy • Bain • Webtrends • Klout • Crowdbooster • Salesforce • Deloitte • SAP • Oracle • Microsoft Dynamics • Havas Digital • Publicis • Good Data
  • 41. MARKETING STRATEGY - BUILDING PERSONAL RELATIONSHIPS TO SELL A PERSONALITY! 41 EXISTING IBM CUSTOMERS Will take the advantage of IBM current customer base to push our product initially in the market Those customers will become our reference to other BUILD NEW RELATIONSHIPS By understanding the companies problems will be able to offer them the best solution Meeting new customers in conferences and big technology exhibitions DEMOS AND FREE TRIAL Offer a secured free trial period of two months for our key clients In business conferences, we will be showing a demo of Seismic Upsell current customer base Create new reference clients Broaden customer base