Instrumented Interconnecteds Intelligent

Every tech company attempts to sell potential  customers on the promise that its products and services will deliver a superior return on the customer’s investment dollars. That’s not a particularly difficult task when you’re talking about traditional IT investments, which seek to improve the efficiency and productivity of the IT function itself. But it’s harder when the purpose of the investment is to boost the performance of an entire business, including placing a value on the benefits received by the customers’ customers. Such is the challenge facing IBM when it hawks its Smarter Planet solutions.

A year ago, IBM’s leaders commissioned the IBM Center for Applied Insights, an internal research group,  to come up with a way of presenting the whole array of gains from Smarter Planet projects by focusing on vertical industries. The group created a new methodology for gathering and analyzing pertinent information and placing dollar values both on the components of a project and on the entire effort. The initiative, called “ROI for Smart,” has resulted in series of reports analyzing the returns for specific projects in eight industries. Steve Rogers, the director of the Center, says that unlike other approaches in the tech industry, “this is not about measuring the ROI of IBM’s products and services; it’s measuring the ROI of pursuing a Smarter Planet path and achieving higher levels of business competency.”

As a reporter covering the enterprise technology industry for two decades, I was deeply skeptical whenever tech vendors claimed that they had come up with their own assessments of the value they could create for customers. I still am. But I’m also impressed with the results that Rogers and his team have come up with.

You can decide for yourself if their analysis is credible by reading the reports:

Healthcare: Capturing Value from Patient Centered Care.
Retail: The Value of Smarter Merchandising.
Electronics: The Road to Customer Intimacy.
Banking: The Value of Credit Risk Management.
Transportation: The Value of Customer Centric Sales & Services.
Government: The Value of Smarter Social Services.
Telecom: Smarter Communications Through Analytics.
Chemicals and Petroleum: The Value of Smarter Oil and Gas Fields.


This is the third in a series of three essays about the potential payoff from applying Smarter Planet thinking to businesses. The first two essays can be found here and here.

roi for smart graphic


The work on the “ROI for Smart” reports was done by a small team of quants aided by experts in each of the eight industries. They identified important activities in the industries that could gain from gathering data from many sources and analyzing it with the goal of making innovative, large-scale improvements. The teams looked deeply at the results achieved by companies that have already improved their business competencies. They tapped industry and academic literature for additional proof points. Then they modeled the business competencies and associated value-creation drivers so potential customers can use them to estimate the benefits they might receive from going the same route.

Each industry study describes a progression of improvements that can be taken step by step. In the airline industry, for example, the goal is to create customer-centric sales and services. The progression starts with consistently capturing the traveler’s travel history and profile data and offering information and services to them through a wide variety of communications channels. It concludes with the airline having the ability to deliver a stream of information to customers that enables door-to-door journeys via a variety of travel modes that are interconnected and seamlessly convenient–something IBM calls an integrated travel ecosystem.

Analyzing the real results achieved by a $12 billion airline, the study concludes that a similar airline could pocket $277 million in total economic benefits. Broken down into components, 35% of the gain comes from finding new ways of creating value for customers; 28%  from expanding the airline’s role in the travel ecosystem; 24% from increasing the loyalty of targeted customers by delivering a better traveling experience; and 13% by improving productivity. “This offers the industry the ability to increase their profit margins, get away from nuisance fees and make customers happier at the same time,” says Rogers.

A lot of organizations grok the Smarter Planet vision, but these reports tell them what the technology really means for their company in dollars and cents. It provides them with the data they need to build a strong case for these types of initiatives. At least that’s the goal. Now we’ll see if this kind of deeply researched marketing activity can stimulate demand in the marketplace.

Bookmark and Share

Previous post

Next post

August 22, 2015
9:29 pm

If you are writing on a newspaper’s website on a specific issue are you considered a website columnist or a blogger? What separates the two?.

Posted by: optisoins skikda
December 11, 2014
12:41 am

This paragraph will help the internet viewers for creating new website or even a blog from start to end.

web page (Allie)

Posted by: Allie
November 7, 2014
7:46 pm

If you are the surviving spouse of a military service person whho has either
died, is missing in action,or is a prisoner of war, you may qualify for a VA home loan under certain conditions.
- Zero down payment: With this benefit, the veteran need
noot accummulate hugge amounts for paying the down payment on the loan approved.
Houston VA Home Mortgage Loans experts help you to get a Houston Veterans Mortgage Home
Loan. VA loan were originally created to provide a route to
homeownership for United Sates veterans returning from World War II.
Essentially you can do everything right, but stiull be stuck with the property for a year unless you can find a cash
oor non conventional buyer.

Posted by: VA Mortgage
October 11, 2014
12:53 pm

Hey there! I know this iis kind oof off-topic bbut I needed to ask.
Does managing a well-established website like yojrs take a massive amount work?
I am completely new to operating a blog but I do write in my journal everyday.
I’d like to start a blogg so I can share my own experience and feelings
online. Please let me know if you have any kind of recommendations or tips for new aspiuring bloggers.
Appreciate it!

Posted by: full article
September 21, 2014
12:27 am

If you are going for best contents like I do, only go to see this website all the time as it
provides feature contents, thanks

Posted by: replacing head gasket
August 24, 2014
9:01 pm

Excellent beat ! I would like to apprentice while
you amend your web site, how could i subscribe for a blog site?
The account helped me a acceptable deal. I had been a little bit acquainted of this your
broadcast offered bright clear concept

Posted by: コーチバッグ 2014
August 23, 2014
8:59 pm

The quantitative hcg test is performed when the amount of hcg is desired to be known.
However, there are numerous HCG recipes that exist, thanks to the thousands of people who’ve bravely undertaken this diet.
Depending on who you talk to, the h – CG diet in its
original form as appropriated by Dr Simeons as either a weight-loss
marvel or a dangerous fraud.

Posted by: hcg weight loss effective
August 23, 2014
8:57 pm

This is the only way to know that you are on track. Taking hormones on your own can be dangerous,
even if that hormone is generally safe. But If
you are trying-to-conceive , every time you miss your period, your hopes
that you are now finally pregnant go up.

Posted by: Weight Loss Hcg Side Effects
August 23, 2014
8:41 pm

If you are looking for a self employment mortgage, you
can visit any of the websites of the companies that offer you these services.
But interest-only loans were marketed to everyone so as to maximize the sales of homes,
and purchase and refinance mortgages. The first available mortgage proffer may be a fault for establish a residence.

Posted by: how do self employed people get mortgages?
August 19, 2014
4:34 am

Construction lending is often considered to be a more risky type of lending
that others. Construction loans were generally considered to be riskier than other commercial financing by most lenders even before
business finance funding options became more limited recently.
The stamp duty The stamp duty according to the
newer budget might help some of the residential but for the foreigners who have been doing great for the economy of the country will be disappointed.

Posted by: Norine
August 8, 2014
1:55 am

Basically, geophysical survey means any systematic gathering of
geophysical data required for the spatial studies. However, most lenders will limit a home equity loan for home improvements to a maximum of $1,000,000.

You report to yourself, you make your own hours and you pay

Posted by: renovation loans
July 22, 2014
9:50 pm

A wholesale fashion store is the answer to all your questions, as this is one place where you can get the best of all-things-girly, at
rates that will make you gape in disbelief. Other than this if you still want to get your designer jewelry for cheap then you
can buy it online from an online jewelry gallery.
Easily damaged items, such as necklaces, often benefit the most from jewelry organization.

Posted by: online jewelry shop
July 1, 2014
10:17 pm

It’s an awesome article in favor of all the web people; they will
get advantage from it I am sure.

Posted by: Cerys
June 28, 2014
9:51 pm

Whether it is pve or pvp Jewelcrafting has goodies for all.

Posted by: pendant jewelry
June 17, 2014
7:32 am

Instead you can just use a office blinds damp cloth. There are varieties of window blinds have
grown more popular as they have many more options and are therefore somewhat more complicated and of course it’s best if you get
them polished periodically. Well, the best option foe sun protection and what impact aesthetically it will have holes in them through which light may infiltrate your room.

Posted by: Rodrick
April 18, 2014
1:54 am

Activities and deliverables that don t contribute to
the overall strength of the top five advertising or so
search returns. There are lots of packages for everyone for their
own personal reasons. If you have to still be ready to propose methods that advertising you may want to target on your SEO boots.
This is the most potential clicks. Today we can find that relates
to your niche. Uninterrupted monitoring of the website in a high position, and you should probably consider expanding its content to keep the site updated.

Posted by: northampton internet marketing
February 13, 2014
2:59 am

Way cool! Some very valid points! I appreciate you writing this post and also the rest of the site
is also really good.

Posted by:
December 24, 2013
10:29 am

Hello, Neat post. There is an issue together with your web site in web explorer,
could test this? IE nonetheless is the market chief and a good part
of other folks will leave out your magnificent writing because of
this problem.

Posted by: tenancy clean southampton
August 7, 2013
7:00 am

Thank you, I have recently been searching for information about this topic for a while and yours is the best I have found out so far. However, what in regards to the bottom line? Are you positive about the source?

Posted by: electronic gadgets
August 6, 2013
9:39 am

I think other web-site proprietors should take this website as an model, very clean and fantastic user genial style and design, as well as the content. You are an expert in this topic!

Posted by: travel socks
August 3, 2013
3:08 am

Great amazing things here. I am very satisfied to look your article. Thank you so much and i’m looking forward to touch you. Will you kindly drop me a e-mail?

Posted by: efficiently order home
August 2, 2013
1:45 pm

I have read a few good stuff here. Definitely price bookmarking for revisiting. I wonder how a lot effort you set to create the sort of magnificent informative web site.

Posted by: increase your blog
August 2, 2013
12:20 pm

I¡¦ve been exploring for a little for any high-quality articles or blog posts in this sort of area . Exploring in Yahoo I at last stumbled upon this web site. Reading this info So i am satisfied to express that I have an incredibly just right uncanny feeling I came upon just what I needed. I most undoubtedly will make certain to don¡¦t omit this website and provides it a glance on a continuing basis.

Posted by: expert beauty suggestions
August 2, 2013
9:18 am

Hello there, I found your website via Google while searching for a similar topic, your web site came up, it looks great. I have bookmarked it in my google bookmarks.

Posted by: exploring furniture details
August 1, 2013
11:00 pm

My wife and i got so joyful Louis managed to conclude his homework from the ideas he obtained when using the web site. It is now and again perplexing just to continually be giving out secrets and techniques many others may have been making money from. So we see we need the blog owner to be grateful to for that. The explanations you have made, the easy blog navigation, the friendships you help to foster – it is mostly fantastic, and it’s really making our son and our family reason why this article is thrilling, and that is unbelievably fundamental. Many thanks for the whole lot!

Posted by: Wireless Speakers
August 1, 2013
6:45 am

Great info and straight to the point. I am not sure if this is in fact the best place to ask but do you people have any thoughts on where to hire some professional writers? Thank you :)

Posted by: shopping receive it
July 27, 2013
9:17 am

Hi there, You’ve done an excellent job. I’ll definitely digg it and personally recommend to my friends. I am sure they will be benefited from this site.

Posted by: Contemporary Design
July 25, 2013
5:53 pm
February 5, 2012
8:56 pm

I think should take on board some market share in the Smartphone Market. I love to see the integration of some of existing services with mobility access.

Posted by: Business Consultancy
February 1, 2012
1:01 am

ith consistently capturing the traveler’s travel history and profile data and offering information and services to them through a wide variety of communications channels. It concludes with the airline having the ability to deliver a str

Posted by: ゴヤール
December 15, 2011
4:00 am

he progression starts with consistently capturing the traveler’s travel history and profile data and offering information and services to them through a wide variety of communications channels. It concludes with the airline having the ability to deliver a stream of information to customers that enab

Posted by: マークバイマークジェイコブス
2 Trackbacks
October 9, 2016
11:27 pm

[…] Click here to investigate the findings and best practice research […]

Posted by: IBM Smarter Planet Delivers Tangible ROI – Blog Import
August 6, 2011
5:49 pm

[...] Click here to examine a commentary and best use research [...]

Posted by: IBM Smarter Planet Delivers Tangible ROI |
Post a Comment