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Innovation That MattersInnovation That Matters

Tim BouskyDelivery Executive IBM Global Services , ASEAN/ South Asia

Ho Chi Minh, VietnamOctober 5-8, 2005

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The Straits Times Articles — Sept 26, 2005

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AgendaAgenda

Setting the Scene

Strategy & Value Creation

Innovation Defined

Insight, Invention, Innovation

Ingredients for Innovation

Living the IBM Values

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Setting the SceneSetting the Scene

Electronic Business

Deregulation

Globalization

Disruptive Technologies

Convergence

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CEOCEO’’s Agendas Agenda

Survey of 465 CEO’s by IBM Business Consulting Services 80% cited revenue growth as #1 focus area over next 3 years

“Your Turn: The Global CEO Study 2004.”IBM Business Consulting Services. 2004

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Strategy and Competitive AdvantageStrategy and Competitive Advantage

Clearly desirable but…

Competitive advantage is short livedCompetitive advantage is tomorrows requirement

Without significant competitive advantage long term result will be zero returns

Strategy builds in SUSTAINED VALUE CREATION

Continuous improvementBreakthrough thinking

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Technology transcends all industries and can change the status Technology transcends all industries and can change the status quo very quicklyquo very quickly

Merloni Washing machines RFID tags on clothesAdjusts the cycle to suit

Vending machines in JapanRange of goods and servicesPayment optionsPower savingMonitoring and replenishment

Automotive innovation90% electronics by 2010

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Breakthrough

Substantial

Transformational

Com

petit

ive

Adv

anta

ge

Amount of change required of the enterpriseCorporate Strategy for the new millennium — IBM Institute for Business Value

Incremental

Strategy and Value CreationStrategy and Value Creation

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Insight Invention InnovationInnovation

What is Innovation?What is Innovation?

“Innovation is a societal -- not a technological -- phenomenon, that arises from the intersection of invention and insight”.

Sam Palmisano, CEO, IBM Corporation

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Pace of Innovation AcceleratingPace of Innovation Accelerating

Newer technologies taking hold at double or triple previous rates

Automobile

Inte

rne

t

TelephoneElectricity

Radio

Television

VCR

PC

Cellular

0 25 50 100 125 15075Years

0

50

100

% P

enet

ratio

n

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The Changing Nature of InnovationThe Changing Nature of Innovation

It’s occurring more rapidly

It’s more open and requires wider collaboration across disciplines,specialties and borders

Technology is embedded — technology will create or follow innovation

Where business insight and Invention come together…..

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Intersection of Insight and InventionIntersection of Insight and Invention

GPS and wireless technologies

“Pay as you drive“Insurance

Good drivers want cheaper rates for their track record

Norwich Insurance

Data Analytics Technologies

Proprietary scheduling algorithms/

optimization

Customer sat and Operational efficiencies must improve in synch

Boston Coach

Distance Learning Technologies

On Line learning options

Adults want education but are time constrained

Apollo Group(education)

Hand held devices and satNav

“Neverlost”Navigation and check in

Travellers will pay a premium for convenience

Hertz

Satellite tracking and Scheduling

Reduce deliveries from 3 hrs to 20 mins

Expensive capital lying idle waiting for deliveries

Cemex

InventionInnovationMarketInsight

Company

Innovation

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IBM and Innovation IBM and Innovation —— a Rich Historya Rich History

Past InnovationMagnetic StorageRelational DatabasesDRAMRISC

Recent InnovationCopperDeep BlueSilicon Germanium

FuturesCarbon NanotubesMillipede StorageAutonomic Computing

People5 Nobel Laureates7 winners of National Medal of Technology3 winners of National Medal of Science10 members (for 5 inventions) of National Inventors Hall of Fame

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Innovation in IBM Global ServicesInnovation in IBM Global Services

Insight Invention InnovationInnovationIBM SoftwareLabs

IBM Research &Development

Emerging BusinessOpportunities

Best of Blue

IBM BusinessConsulting Services

EBO’s

IBM Business Partners

IBM Institute ofBusiness Value

IBM Academy Extreme BlueGlobal Technology Outlook

Global InnovationOutlookEngineering and

Technology Services

First of akind (FOAK)

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India Software Labs

IBM Software products: Support & DevelopmentProduct development and support for all IBM SWG groups

Solutions Architecting (Retail, Finance), Linux, Web Services, Grid Computing, Autonomic Computing and RFID for clients globally & in India

India Research Labs

First of its kind Centre worldwide - innovative technologies for improving IT services - workforce efficiency, asset reusability, improved methodologies and delivery capabilities on a global scale

Services InnovationResearch Center

One among 8 facilities worldwideCutting-edge research in the areas of electronic commerce, supply chain management and distribution, cellular and mobile telephony systems, e-governance and distance learningTaking IBM’s innovation leadership to our clients globally & in India

Taking our innovation leadership to our clients in ASEAN/SATaking our innovation leadership to our clients in ASEAN/SA

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Five-year study to use the world’s largest collection of DNA samples to map how humankind populated the planet

Most ambitious genetic anthropology research initiative in history

Goal: Enable researchers to better understand the connections and differences that make up the human race

Provide researchers with a readily-available pool of computing power to speed solutions to human diseases

Fuel the Human Proteome Folding Project

Develop applications to help predict natural disasters and address world hunger

World Community GridWorld Community GridApplying the power of the world’s 650 million PCs to humanity’s toughest issues

The The GenographicGenographic ProjectProjectLandmark Study of the Human Journey

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METRO GroupMETRO Group

Realization of a pilot supermarket in Germany

Application of RFID technology:

to identify productsprovide staff with real-time product

informationautomated and integrated supply chain

In-store innovations from intelligent weighing machines to a self-checkout

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Cirque du SoleilCirque du Soleil

One of the world’s foremost entertainment brands with 10 different shows across four continents

A partnership to design and implement a global wireless solutionusing open standards technology

Effortless access to critical information

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Ingredients for InnovationIngredients for Innovation

Burning Platform — build into StrategyProcesses and cultureLeverage and reward

Partnerships

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Thank you!

Tim Bousky Director, Service Delivery ASEAN/SA

IBM Global Services9 Changi Business Park Central 1Singapore 486048

Tel: +65 6418-2288

Email: timb@sg.ibm.com