Architecting Disruption

Leveraging cognitive, automation and cloud to accelerate your business today and tomorrow

Mickey IqbalIBM Fellow and IBM Master InventorIBM Global Technology Servicesiqbala@us.ibm.com

@IBMforCIO/ DOC ID / Month XX, 2017 / © 2017 IBM Corporation

@IBMforCIO

Since 2000,

52%of Fortune 500 companies have either gone bankrupt, been acquired or cease to exist.

are vulnerableto disruption within three years

72%

expect more competitors

from outsidetheir industry

54% of CxOs

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#disruption"There’s never been a better time to

be a great CIO or a worse time to be

an average one.”

- George Westerman, MIT Sloan

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Disruptors are using the power of data, cloud and artificial intelligence to transform essential experiences.

Best-in-class companies are

43% more likely to use

advanced analytics to provide their knowledge practitioners with recommended actions based on data-driven insights.

For 85% of leading

companies, hybrid cloud is accelerating digital transformation

72% of business

leaders believe a competitor will use data to disrupt their business within the next 3 years

75% 55% 81%

of developers to embedcognitive into apps by ‘18

of new Appscloud native by ‘19

of IT leadersare investing in AI now

… what are you doing to win?

AI will enable the next generation of opportunity

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To win, it takes Inspiration, Initiative, Ingenuity, and more…

Optimize your infrastructure with cloud options

Ingenuity to reshape IT and architect the future

Speed innovation and operations by putting the right workloads on the right cloud.

Inspiration to co-create and transform experiences

Design a growth business, re-engineer processes, and personalize customer experiences & applications by infusing cognitive / AI.

Create smarter applications and services

Initiative to accelerate data intelligence and innovation

Store, secure, access, and analyze increasing volumes of structured and unstructured data gaining new insights.

Accelerate data intelligence and innovation

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The right architecture supports innovation today, tomorrow and beyond.

Four dimensions designed as an integrated whole to support innovation today and in the future

Deploy new, industry-specific, differentiating capabilities fast

Allow your accumulated expertise to shine through in everything you do

The ability to derive insights and knowledge from your data while governing regardless of location, respecting compliance and sovereignty

Integrate mission critical applications alongside new, cognitive and data loads and accelerate AI data ingestion and training

Cloud Infrastructure

Data

AI/Cognitive

Applications, solutions and services

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When business and technology objectives are one and the same…

FLEXIBILITY AND SCALABILITY

SECURITY BAKED IN

CORE STRENGTH

Why focus on architecture? Why now?

…you must bring all business platforms together as one technology framework.

• Innovation

• Customer experience

• Personalization

• Create smarter apps and services

• Accelerate data intelligence and innovation

• Optimize your infrastructure with cloud options

Your business strategy and your technology are now inseparable — and we’ve reached a perfect storm for cloud, cognitive/AI, and data technologies

• Process improvements

• Business efficiencies

• Customer and market intelligence

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IT organizations are moving to the Enterprise IT as a Service model & becoming a broker of services in the evolution to Hybrid Cloud

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Services

Catalog of IT services and service portfolios that fulfill

the needs of business, offering value-based choices

through tiered standard offerings and service levels

Financial

Transparent financial model that establishes costs in business terms, forecasts demand and provides levers to influence service consumption; results in a Bill of IT forthe business

Technology

Open standards-based environment features highly automated processes, continuous improvement based on analytics and cognitive technologies, just-in-time capabilities; incorporates virtualization, public and private cloud solutions

Organizational

Service-aligned resources are responsible for the

P&Land performance for their service; emphasis is on

understanding business needs, IT capabilities and

business outcomes

Every modular service we offer—

from both IBM and ecosystem partners—

brings you a standard set of benefits:

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+ Configurable to your specific needs

+ Interoperable with other offerings

+ Always improving with every update

+ Generates rich data to fuel Watson

+ Tamper-proof, with security integrated

With the agility to rapidly compose services at scale,

you can dramatically reduce time to value and

stay ahead of the ever-changing needs of your business.

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Partnering humans with a cognitive ‘brain’ and automation on an integrated platform enables you to accelerate innovation and deliver unmatched performance by:

Augmenting human intelligence with cognitive insightsto enable practitioners to make data-driven decisions.

Autonomously managing your IT operations to deliver higher service quality through error reduction and faster incident resolution.

Autonomously governing your IT to continuously optimize IT usage and cost.

Practitionersmake strategicdecisions

Insights and advice Directives

Operations and situation dataImperatives

Automationexecutes tasksand operations

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Watson understands, reasons and learns from data

IBM Watson

Data Lake

Client Insight Dashboards

ITaaS Environment

Client Workloads

Composable Services

Traditional IT Private Cloud Public Cloud

Design

Optimize

Manage

800+Clients

79% automated incident Resolution

~90%faster problem resolution

Transforming IT with IBM Services Platform with Watson

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Design, build and run always on platforms for business workloads…

...by assembling the optimal mix of IBM and 3rd party services...

...which run across robust traditional ITand cloud platforms.

ComposableServices

Hybrid CloudInfrastructure

Client Workloads

Workloads for Customer-facing Solutions

Workloads for Business Partner Solutions

Workloads for Workforce Enablement Solutions

Orchestration

Operations

Analytics, Cognitive, Automation, DevOps & Security

Traditional On-premises IT Client-based

Private CloudIBM

Public CloudPublic CloudIBM

Private CloudClient-based

Public Cloud

3rd Party Services

3rd PartyService

3rd PartyService

3rd PartyService

Client App

3rd PartyService

3rd PartyApp

IBM Services

ResiliencyCloud

Systems IBM App

Mobility Network

SecuritySupport

Brokerage

By integrating services on the IBM Services Platform with Watson, you can design, build and run your entire environment as one end-to-end infrastructure.

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IBM’s Data Lake and Knowledge Base

Watson, trained in running and transforming IT

Services integration model

...and has been deployed to more than 800 managed services clients

IBM Services Platform with Watsonhelping clients stand out from the competition in three primary ways…

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Apply technologies in unique ways to change the game

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Blockchain’s early adopters – the Explorers – are turning uncertainty that comes with digital disruption into their unique advantage.

One in five Explorers intends to disrupt a

new market or industry by completely

changing the rules of the game.

66% of Explorers are experimenting with a

radically different business model — the

platform model — to create entirely new

forms of value.

Source: Forward Together: Three ways blockchain Explorers chart a new direction, May 2017, Global C-suite Study, IBM Institute for Business Value

Learn more: Wal-Mart and Food Safety

How we got there

“We need our trucks to leave on time… through automation we were able to reduce critical issues by more than 89%... we’ve decreased our server downtime by over 50%.”

Frank Merli,

VP of Infrastructure and Cyber Security, Sysco

Case Study

What we achieved

• World’s largest food service distributor requires consistent on-time delivery

• Dynamic Automation applied to ~4000 servers to identify and fix problems instantaneously

• Increased customer satisfaction and improve supply chain performance

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Why IBM for your enterprise?

Only IBM can infuse the power of cognitive and cloud with deep industry experience to help clients put their own data and knowledge to work - digitally reinventing their business for growth and

competitive advantage.

We are built for data and cognitive / AI

• Cognitive-ready, purpose-built cloud

• Breadth of API Services: Vision, language, speech, emotional and intellectual capabilities

• Simplified data governance and management

We bring enterprise and industry expertise

• Industry-focused expertise, applications, data sets, and partnerships

• Lifecycle and transformation services from strategy to support

• Flexibility, scale, and performance with baked-in security

We give you choice and control

• Control of your data and knowledge

• Ability to leverage open source and open standards

• 50+ locations to support your data location and sovereignty models

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