PowerPoint Presentation

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A smart, business intelligence tool detecting micro-trends and driving business success by transforming social media into strategyIBM Watson Seismic

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OUR TEAM

HELLO

Zamzam Asmar - business managementKeriann Kozub - marketingFadhel Maina - financeLotus Mendoza - project managementElisabeth Middlemas - communications and mediaSandeep Vete - innovation and design thinking

THE AGENDA4

THE PROPOSAL

OPPORTUNITY

HOW IT WORKS

GO TO MARKET

FINANCIALS

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THE OPPORTUNITYBIG DATA, BIG TRENDS, BIG CONFUSION51

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 mediaYet 68% of CEOs feel like they are experimentingBy 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.

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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 STRATEGY9How can Watson provide unique value in solving these major pain-points facing businesses today and help them lead?

10PROPOSAL AND STRATEGYA SEAMLESS FIT INTO IBMs BUSINESS MODEL2

WATSONS COGNITIVE ABILITIES UNIQUELY POSITION IT

ROIIntegration of company specific ROI measurements.ZOOMAbility to zoom in on micro-trends like an always-on global focus group.REAL TIMEAbility to provide real-time analysis and actionable recommendations.

LEARNING THE CLIENTAbility to fully integrate the business, learning each customers unique values and drivers.INTELLIGENCEAbility to understand natural language: Analyzing what people are actually saying, not an algorithmic version of that sentiment.NO LIMITS INTERPRETATIONAbility to interpret unstructured and non-text data.

Watsons cognitive abilities, set it apart from any other product or service on the market today.

A ONE STOP SHOP AT YOUR FINGER TIPS12

SOCIAL MEDIA ANALYTICS

BIG DATA ANALYTICS

COMPANY STRATEGY

COMPANY RESOURCES

BUSINESS METRICSWATSON SEISMIC

DELIVERING HIGH VALUESeismic 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 IBMs current framework.Social media analytic data in real timeMaking recommendations with its cognitive abilities. The more seismic learns about the company, the more valuable it becomes.Fits into current IBM structures / teamsA 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

14HOW IT WORKSSTEP BY STEP3

ON THE PULSE OF THE WORLD15

Impacts of regional events, policies, newsREGIONAL MARKET INFOCapitalizing on local, regional, global trends firstTRENDSProactive risk management POTENTIAL ISSUESFrom a multitude of media sourcesGLOBAL MEDIACutting through all the noiseSOCIAL MEDIAFlanking the competition, following their actions and impacts in the market.COMPETITORS

INTERFACING WITH INTERNAL AND EXTERNAL DATA16DRIVING LONGTERM, INITIMATE CUSTOMER RELATIONSHIPS - AVERAGE OF 5 YEARS.A LEARNING ECOSYSTEM more powerful everyday.A CORPORATE MEMORYIntrinsic to its clients social media, marketing and even operational strategies.

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EASY TO READ REPORTSOPTIMIZING STRATEGYIN REAL TIME FROM ANYWHERE

FAR REACHING OPPORTUNITIES INTO OTHER AREAS OF THE BUSINESS18

THIS SYSTEM ULTIMATELY CAN BE TIED INTO AND HELP SELL MANY OTHER IBM COGNITIVE BUSINESS PRODUCTS

SAY HELLO TO SEISMIC

21GO TO MARKETMARKETS AND CUSTOMERS4

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FIELD RESEARCH"We use upwards of five tools daily. None are great, none do everything."Director of Social MediaBirchbox, New York, US "A tool that can analyze semantics accurately and efficiently will be a 'holy grail for marketers.Director of Digital MarketingHavas, 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 SEISMIC23OUR RESEARCH SHOWS POTENTIAL CLIENTS ARE MOTIVATED BY 3 KEY MESSAGES 123

Cognitive power to understand micro-trends faster than is humanly possible Knows your business better than any individual canCuts man-hour costs and drives efficiency

BUILDING UP THE CORE SEGMENTS24

CMOs of major corporates with global reach or ambition: initially targeting Hospitality, Consumer Goods and Aviation CORE SEGMENTExpand to major marketing, social media and communications consultanciesEXTENDED SEGMENTLarge 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 DUBAIWHY HERE , WHY NOW25

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WATSONs UNIQUE VALUE PROPOSITIONDUBAI IS READY AND WAITINGIBMs CURRENT BUSINESSIBM EXPERTISETHE RIGHT MARKETRIGHT PRODUCT

28GO TO MARKETSALES AND PRICING4

MARKETING STRATEGY29

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. THOUGHTLEADERSHIPshowcases Watson Seismics cognitive ability through social media, authored articles in business publications, white papers, and eventsBUILD WATSON SEISMIC AS A PERSONALITYWorld Economic Forum, TED talksHIGH PROFILE PARTNERSHIPS

A 3 PHASED LAUNCH30201720182019202020212016

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 Watsons capability for their broad client bases. PHASE 1: DUBAI PHASE 2: GLOBAL ROLL-OUTPHASE 3: MARKET EXTENSION

PRICING STRATEGYTwo factors determine the pricing of Watson Seismic:12Level of functionality Geographic reach

PRICING - LEVEL OF FUNCTIONALITY 32Functionality level based on client motivation:Basic: drive efficiency Intermediate: control and monitor Premium: drive business growth BASICUp to 10 users1 brand tracked2 competitors monitored

$ 81,101Implementation feesPREMIUMUp to 50 usersUnlimited brands trackedUnlimited competitors monitoredE-mail integrationCRM/ERP IntegrationINTERMEDIATEUp to 30 users5 brands tracked5 competitors monitoredE-mail integration

$ 162,202 Implementation fees$ 22,000 / year

Bespoke offerings drive even higher value

Strategic Analysis & Creative DirectionWorkflow management

$ 32,000 / year$ 42,000 / year$ 324,403 Implementation feesAll 3 offers include multilingual support, cloud hosting, Social & online media monitoring and market insights

PRICING GEOGRAPHIC PACKAGES33

Northern America & CaribbeanCentral & South AmericaEuropeMiddle East & AfricaAsia PacificTHREE CONTRACT OPTIONS:CountryRegionalWorldwide BASIC$ 792,000PREMIUM$ 1,512,000INTERMEDIATE$ 1,152,000

Seismics solutions are packaged to accommodate geographic monitoring requirements on a country, regional and global level. WorldwideRegionalCountry$ 264,000$ 384,000$ 504,000$ 22,000$ 42,000$ 32,000

FINANCIALSWHAT DOES IT DO FOR THE BOTTOM LINE?345

Total MarketPotential MarketAccessible MarketRealistic Market62715010019X 24%X 68%X 20%FUNNELING DOWN TO A REALISTIC MARKETSHARE based on offerings / switching 3 Target IndustriesConsumer GoodsAviationHospitalityCurrent market share for CRM solutions between SAP, Microsoft, Oracle and IBM 1% of CMOs unsatisfied with their current social media analysis tool 2Customers for whom we meet the minimal requirementsCustomers willing to switch to a new productCustomers willing to switch to SEISMICEarly adoption percentage + marketing effort 3References1 - 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-quadrant2- http://www.socialmediaexaminer.com/SocialMediaMarketingIndustryReport2014.pdf3- http://www.ou.edu/deptcomm/dodjcc/groups/99A2/theories.htm

PROJECTED CUSTOMER GROWTH 5 YEAR 36By year 5, up to 140 country, 17 regional and 13 worldwide licenses

FREE CASH FLOW PROJECTIONS 37NPV$13,043,735

38THANK YOUQUESTIONS?

APPENDIX

GROWTH AND INNOVATION IN A COMPETITIVE MARKETWATSON SEISMICS USP = FIRST TURNKEY SOLUTION THAT CAN TAKE ON CONSULTING + PROVIDE THE DATA / ANALYTICS IN REAL TIME

Integrated Business Intelligence solutions Strategy, media & brand consultanciesHighcostLow costFull service

Niche players

SASGoogle Analytics HootsuitIBMSpecialized social media management Digital customer experienceTrustYouHubspotMediaWatchMeltwaterCisionTrackurDurrantsMillward BrownMcKinseyKantar GroupBrandwatchTweetreachMoz AnalyticsSproutSocialTopsyBainWebtrendsKloutCrowdboosterSalesforceDeloitteSAPOracleMicrosoft Dynamics Havas Digital PublicisGood Data

MARKETING STRATEGY - BUILDING PERSONAL RELATIONSHIPS TO SELL A PERSONALITY!41