Innovation på IBM

Andreas Lundgren

External Relations

IBM

”Agenda”, or overview, or gameplan, or...

• Innovation, Definition and example, trends and aspects• Structured and unstructured – a look at the IBM

organization and innovation– Integrated Product Development – the very structured process

for the very structured development– Tools and thinking around distributed, (initially) unstructured

innovation– Example of employee innovation

• Tools discussion, Lotus Connections, Rational...

Why should you

listen to IBM?

http://www.ibm.com/ibm100

100 years of innovation

© 2012 IBM Corporation

Source: IFI Patent Intelligence

Num

ber

of

Pat

ents

Patent Leadership2011 US Patent Leaders

What do we mean?

Innovation occurs at the

intersection of invention and

insight.

Something new

It is about the

application of

invention.

Value, value, value!New ideas that add

value

Trends In Innovation

• Collaborative

• Multi-disciplinary

• Global

• Open

Facets of Innovation• Top Down

• Lead and support from the top. Give permission to be innovative

• Support a culture of innovation and lead by example

• Proven capability to innovate part of promotion criteria

• Supporting IT framework – anyone can add content

• From the Base Up• Engage everyone – close to the ground and near the customers is where the challenges to innovate

around can be found

• Use all brains of the organization

• In From the Side• Collaborative innovation, value networks, open innovation, Disruptive Business Platforms

Structuredor not so

structured

IBM’sOrganizationalChart

Global Business Services(Solutions, transformations)

Research(Future technologies,

services and customer specific solutions)

Sales(”One IBM” in front of the clients, Long term

relationships)

Clients/M

arkets

Global Technology Services(Service Catalogue, Outsourcing...)

Software Products and Solutions

(Develop and sell)

Hardware Products and components

(Develop and sell)

Industry Frameworks

Structured Innovation in Product Development

• Integrated Product Development– IBM’s process for structured development of products & services products– Since mid 1990:s

• Used by parts of IBM that develop software (SWG), hardware (STG) and service products (GTS)

• Has collaborative elements, brings in Lean and Agile, measurements and controls

• Under constant refinement

http://asq.org/quality-progress/2006/08/one-good-idea/improve-product-development-using-ipd.html

Integrated Product Development(as shown externally)

Top down support

Examples in practice: Innovative things are held up as good examples and awarded. The importance of innovation is stressed. Funding for innovative solutions made available. New social tools used by executive leadership.

IBM, The Innovation Company(top down support)

One cohesive, company-wide strategy for defining, measuring, shaping and sparking innovation, as the base for IBM’s culture

Examples: Consultant, IT Architect, IT Specialist, Learning Specialist, Project Management, Project Executive, Product Services, Sales Specialist, Services Solutions Mgmt…

Career steps, example from technical profession: IBM Fellow (approx 50) Distinguished Engineer (approx 500) Executive IT Architect Senior IT Architect Advisory IT Architect Associate IT Architect

Meritocracy – not pay-grades based on age/years in profession

Certifications Giveback, patents, publications, mentoring

Proven innovation capabilities necessary for a successful technical career!

Formalized Technical Professions & Careers

Tools forunstructuredinnovation

•”Facebook”, ”LinkedIn”, Phone book, simple CV

•Communities, gathering the other tools and some additional such as forums

•Status updates (”Twitter”)•Blogs•Social Bookmarks (”Delicious”)•Really Simple project

management•File sharing, like ”Dropbox”

with active sharing and search•Wikis in general and internal

”Wikipedia”•Mail

Social tools – enablers. Greasing the wheels

Example from Swedish (Skånsk) colleague[pau rijktigt]

400.000 profiles in IBM’s internal phone book

I want to be able to smartphone scan in

Profiles. Did not find it so I made it...

Collaborative innovation

• Open Source– Apache Foundation, Linux community, Eclipse– GPFS, UIMA, OpenOffice, MQTT– Java community, OpenStack

• Open Development– Jazz, Rational Team Concert

• DeveloperWorks and AlphaWorks– Developer community– Access to early

technology

Examples from IBM Software Group

Change, Creativityand innovation is back

External forces impacting the organization

2004 2006 2008 2010 2012

Socio-economic factors7 7

8 8

7

Environmental issues8 8

7 7

8

Geopolitical factors9 9 9 9 9

Globalization6

4

6

5

4

Regulatory concerns555

4

5

4 Macro-economic factors

3

66

3 Market factors3

1 11 1

2 People skills2 2

4

2

Technology factors

6

3 3

1

2

Source: IBM Global Chief Executive Officer Study 2012

41%

Underperformers

69%

Outperformers

68%more

Source: IBM Global Chief Executive Officer Study 2012

If we fail to anticipate a hugetechnology step, we might goout of business.”

Industrial Products CEO, France

of the people who deal with yourcustomers every day?”

Insurance CEO, United Kingdom

Outperformers focus more on integrating technology with business for innovation

Partner for innovation, disrupt, and derive revenue from new sources

Differentiate through better data access, insight and translation into actions

Organizational openness introduces new opportunities to create value through employee collaboration

Source: IBM Global Chief Executive Officer Study 2012