NASA/IBM Partnership Milestones IBM ThinkPad 750C first notebook in space computers assist flight controllers in the rescue of the Apollo 13. Astronaut John Glenn four-hour, three-orbit flight is monitored in real-time by IBM computers. IBM software develop the software and systems that will operate the James Webb Space Telescope. IBM technology supports flights of the Space Shuttles Columbia, Challenger, Discovery, Atlantis and Endeavour. NASA’s Pathfinder, equipped with IBM RS/6000 lands on Mars. IBM Helps design and build the Automatic Sequence Controlled Calculator for Harvard University. 1944 1962 1970 1982-85 1993 1997 2006 Our world is becoming smarter Instrumented Interconnected Intelligent 3 IBM Research 60% Of CEO’s agree IT complexity will continue to rise 78% Percentage of CIOs who want to improve the way they use and manage their data CIOs spend an impressive 55 % of their time on activities that spur innovation 94% Of CIOs say it is imperative to integrate Business and Technology to innovate 4 78% of CEOs put more focus on insight and intelligence of information to realize their strategy. 69% Of CEOs will achieve better business results through more collaboration and information sharing The real value arrives when the software capabilities are delivered in an industry context through IBM Industry Frameworks Marketing and Marketing and customer customer management management Store and Store and channels channels IT systems IT systems and and operations operations Information & Analytics Business Processes People Product & Service Innovation Security Operations Supply Supply chain chain Business Business and finance and finance administration administration Merchandising Merchandising and product and product management management IBM Retail Industry Framework 5 Accelerate solution design Retail-specific assets Reduce project risk Reusable implementation patterns and support for industry standards Flexibility Choice of business applications and services from IBM and IBM Business Partners Return on investment (ROI) Build a differentiated retail capability and business value— one project at a time IBM provides a comprehensive framework that delivers accelerates solution deployment IBM Banking Industry Framework • Banking extensions and pre-built solution accelerators to speed deployment Core Banking Transformation Customer Care and Insight Integration Optimization Analytics Collaboration Security Resiliency Payments and Securities Integrated Risk Management The framework gives you speed, flexibility and choice in deploying solutions while reducing cost and risk! 6 The framework provides a bankingspecific software platform with… • Best practices and business- specific usage patterns to lower risk • Support for adoption of open and industry standards • A choice of business applications from IBM business partners • An approach to align technology with business needs Government Services, particularly social security and social services, are key services and a major budget factor for all governments. Improve Citizen & Business Services Outcomes-based Social Services Citizen-centered design Integrated Case Management GOVERNMENT Ensure a Sustainable Environment 7 Manage Resources Effectively Improve Citizen & Business Services Strengthen National Security and Public Safety Software is key to addressing these challenges, transforming the planet and making businesses smarter Smarter energy and utilities Smarter banking 8 Smarter government Smarter insurance Smarter healthcare Smarter telecommunications Smarter transportation Smarter chemical and petroleum Smarter solutions for retail Smarter electronics But with new models and ways of working come new challenges... Global integration and connectivity Data everywhere As the world becomes more instrumented, the challenge is to get more out of the wealth of new information—from managing data to developing insights. As the world becomes more interconnected and as the paradigm of the organization shifts from multinational corporation to globally integrated enterprise, businesses can no longer afford to operate as islands. More than ever, they need to find ways to connect both internally and externally. New expectations for value Customer expectations have never been higher: Personalized service, delivered flawlessly. Differentiation through people As always, it’s the capabilities and ingenuity of the people in business that deliver results. But today, it’s about more than just those on your payroll—the greater opportunity is how well you can engage a worldwide ecosystem of employees, partners, suppliers, and customers to help create new value. 9 Business Software Security risks Technology has allowed work to move beyond physical locations and brand offices. It now exists on virtual platforms, across dispersed teams and players. But the more data and information organizations make available to their internal audience, the greater the risk. IBM software delivers virtually unmatched capabilities, integrated into industry solutions that yield quantifiable business benefits while making the planet smarter. 10 Backup – notes slide 3 How is IBM software helping deliver better business outcomes? Massive investments, leading innovations IBM changed the mix of the business IBM investment has shifted the company toward software 42% 25% 40% • More than US$8 billion in acquisitions and US$9 billion in research and development (R&D) from 2007–2009 • US$20 billion in future acquisitions 40% 37% 35% 2000 Software 11 Segment pretax Income 42% 23% 2006 Services 16% 2009 Hardware/financing • 53 software acquisitions since 2001 • 40 innovation centers, 80 R&D labs, 33,000 developers, more than 30,000 IBM Business Partners • Focus on software solutions and business process transformation