© 2009 IBM Corporation

Open innovation from an IBM Research PerspectiveDr. Matthias KaiserswerthDirector, IBM Zurich Research Lab

Zurich Research Lab

© 2009 IBM Corporation

Building a smarter planet

Agenda IBM Research and Zurich Research Lab Collaborative Innovation at IBM Open collaboration Jamming Next steps

2

© 2009 IBM Corporation

Building a smarter planet

Agenda IBM Research and Zurich Research Lab Collaborative Innovation at IBM Open collaboration: What does it look like? Jamming Next steps

3

© 2009 IBM Corporation

Building a smarter planet

IBM Labs are Globally Integrated

Beijing1995

Watson1945

Zurich1956

Haifa1972

Almaden1955

Austin1995

Delhi1998

Tokyo1982

More than 3,000 scientists and engineers at 8 labs in 6 countriesIBM spent $6B in 2008 on R&D

4

© 2009 IBM Corporation

IBM Zurich Research Lab- 350 Persons including

employees, pre-docs and post-docs and visiting scientists

- 30 different nationalities

- 90 Collaborative projects with universities, industrial partners and governments

- Two Nobel Prizes (1986 and 1987)

- New Nanotech Center to open in 2011

5

© 2009 IBM Corporation

Building a smarter planet

Agenda IBM Research and Zurich Research Lab Collaborative Innovation at IBM Open collaboration: What does it look like? Jamming Next steps

6

© 2009 IBM Corporation

Building a smarter planet

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

What is innovation?Zurich Research Lab

7

© 2009 IBM Corporation

Building a smarter planet

The changing nature of innovationKey factors driving change

–Dynamics of a flattening world–Emergence of new capabilities–Evolution of information technology–March of commoditization–Massive shift in demographics–Unpredictability and impact of change

Innovation in the 21st century–Open –Collaborative –Multi-disciplinary –Global

Zurich Research Lab

8

© 2009 IBM Corporation

Building a smarter planet

Why does innovation matter? Generates high-value,

higher-paying jobs

Fuels wealth creation and profitability

Creates new industries and markets

Spurs productivity and economic growth

Raises standard of living

Goes beyond invention

Zurich Research Lab

9

© 2009 IBM Corporation

INNOVATIONECOSYSTEM

INVESTORS

ACADEMICCOMMUNITY

GOVERNMENT SOCIALMEDIA

EMPLOYEES CONSUMERS

LOCALCOMMUNITY

PARTNERS

CLIENTS

Open CollaborationBuilding a smarter planet Zurich Research Lab

10

© 2009 IBM Corporation

WatsonAlmaden

Austin

TokyoHaifaZurich

India

China

IBM Research Lab

IBM Research Collaboration

Pangoo

11

Collaborative InnovationZurich Research LabBuilding a smarter planet

© 2009 IBM Corporation

Building a smarter planet

Evolution of a PartnershipIBM Research’s Public-Private Partnership with ETH

Zurich Research LabA

ugus

t 200

1

Sept

embe

r 200

3 IBM and ETH

open Center for Advanced Silicon Electronics

Zurich Information Security Center created with ETH and Credit Suisse

June

200

8

IBM and ETH Zurich form $90 million partnership in nanoscience

12

© 2009 IBM Corporation

Multi-Million Dollar Investment in Nanotechnology

IBM constructs the building ETH Zurich rents for a

minimum of 10 years 10,000 ft2 Clean room

facilities Noise-free rooms $30 million in new equipment Both joint and independent

research projects Scheduled to open in 2011

13

Building a smarter planet Zurich Research Lab

What’s innovative?• Intexys Photonics and

Varioprint AG Partnered with the IBM Zurich Research to develop a cost competitive, optical data transmission solution to increase the bandwidth between processor chips.

Innovative CollaborationVarioprint AG and IntexyS Photonics

Zurich Research LabBuilding a smarter planet

14

© 2009 IBM Corporation

Building a smarter planet

Disruptive and Radical InnovationBandwidth Density of Objects

IBM Federation Switch copper and optical interconnect

versions

All Electrical All Optical

Today, optical interconnects are used for long-distance intra-cluster connections due to high bandwidth (BW) capabilities

As BW requirements increase, optics will be able to provide a cost-performance advantage for even shorter distances, for backplane and card level interconnects

Zurich Research Lab

15

© 2009 IBM Corporation

Building a smarter planet

Optical Interconnect: A Supplier Ecosystem

Card-to-card optical interconnect prototype

Multinational Partner

Multinational Partner+European Startup

Optical printer circuit board

Optical connectors

Opto-electronic transceivers

Zurich Research Lab

16

© 2009 IBM Corporation

Building a smarter planet

Building and Maintaining a Health Ecosystem

Broadly speaking, there are two foundational components of an effective keystone strategy. The first is to create value within the ecosystem […] the second is to then share the value within the ecosystem (Iansiti, 2004)

“Successful innovation requires tracking your partners and potential adopters as closely as you track your own development process” (R. Adner, 2006)

Supply Chain Ecosystem StrategyActively create and “manage” supplier base, create value for suppliers ( support adoption of the technology in an entry market). Track ecosystem risk.

Zurich Research Lab

17

© 2009 IBM Corporation

Building a smarter planet

Agenda IBM Research and Zurich Research Lab Collaborative Innovation at IBM Open collaboration: What does it look like? Jamming Next steps

18

© 2009 IBM Corporation

Building a smarter planet

What is a Jam?

• Online collaborative discussions for audiences ranging in size from a few hundred to hundreds of thousands

• Innovation events to capture the pulse of the group or to solicit specific ideas to critical business issues

IBM’s approach for business collaboration and enterprise transformation

Zurich Research Lab

19

© 2009 IBM Corporation

Building a smarter planet

InnovationJamsZurich Research Lab

20

© 2009 IBM Corporation

Building a smarter planet

21

How has IBM used Jams?Zurich Research Lab

© 2009 IBM Corporation

Building a smarter planet

The result of IBM InnovationJamZurich Research Lab

22

© 2009 IBM Corporation

Building a smarter planet

Can you Jam? AbsolutelyZurich Research Lab

23

© 2009 IBM Corporation

Building a smarter planet

Client Jams

• First industry-wide virtual collaboration event to address the challenges facing the North American supplier industry

• Over 150 companies with participants ranging from CEOs, to line of business (LOB) executives, to functional VPs, middle managers and engineers

• CEO sponsored to identify ideas to realize the company’s new strategy with it’s new values as the framework

• More than 33% of Nokia employees participated from 40 countries including factory workers, sales teams, R&D and manufacturing

24

© 2009 IBM Corporation

Building a smarter planet

Agenda IBM Research and Zurich Research Lab Collaborative Innovation at IBM Open collaboration: What does it look like? Jamming Next steps

25

© 2009 IBM Corporation

INNOVATIONECOSYSTEM

?

What does your ecosystem look like?Building a smarter planet

?

?

?

??

?

?

?

Zurich Research Lab

26

© 2009 IBM Corporation

Building a smarter planet

30

Zurich Research Lab