Frank Kern Senior Vice PresidentGlobal Sales and Distribution

Innovating for growth

© 2008 IBM Corporation2

Change is inevitableChange is inevitable

© 2008 IBM Corporation3

New Model for the 21st Century International Exporting

© 2008 IBM Corporation4

New Model for the 21st Century Multinational Country Silos

© 2008 IBM Corporation5

New Model for the 21st Century The Globally Integrated Enterprise

© 2008 IBM Corporation6

Globalization Removes Barriers to Innovation

Traditional barriers to innovation are no longer game stoppers

Innovation can spring up anywhere in the world

New players can enter industries overnight

New and disruptive business models can be created anywhere

© 2008 IBM Corporation7

Innovation is Key for Social and Economic Growth

Innovation resides at the intersection of invention and insight, leading to the creation of social and economic value

© 2008 IBM Corporation8

Why Innovation Matters

Spurs productivity, economic growth

Meets societal needs

Creates national and global markets

Generates jobs, wealth creation

Results in higher standard of living

© 2008 IBM Corporation9

Open

Collaborative

Multi-disciplinary Global

The Changing Nature of Innovation

© 2008 IBM Corporation10

© 2008 IBM Corporation11

Global Integration and InnovationChallenges and Opportunities

GlobalizationGlobalization InnovationInnovation

© 2008 IBM Corporation12

Strategic location

Mexico is Well Placed to Drive Innovation that Matters

Education Investments

Global trade agreements

Foreign investments

Competitive Infrastructure

New generation of skills

© 2008 IBM Corporation13

Three Pillars of Innovation

© 2008 IBM Corporation14

Conclusions

The world is diversified

In the global economy, innovation is key

Mexico is well placed to drive innovation that matters