James W. Johnson (Jim) IBM Global Business Services 248-703-7506 jwjohn@us.ibm

1. James W. Johnson (Jim) IBM Global Business Services 248-703-7506 jwjohn@us.ibm.com

2. The reality of living in a globally integrated world is upon us. The explosion of information has generated complexity. The economic downturn has lead to future uncertainty. Shrinking global automotive sales have left the industry in an upheaval. Increasingly complex supply chains have raised customer expectations.

3. The needfor progress is clear. The Web today, is about equivalent to one human brain. By 2040, it will exceed the total processing power of all of humanity 80% of new data growth is unstructured content

4. The opportunity for progress is clear.

5. Something meaningful is happening…

6. With the advent of new, low cost sensors, we now have the ability to measure, sense and see the condition of most things. Today, there are 1 billion transistors per human…costing 1/10,000,000 of a cent. By 2010, there will be 30 billion RFID tags embedded across our entire ecosystem. Everything will become instrumented: - transportation networks - supply chains - cities - even natural systems like rivers. Instrumented

7. Interconnected People, systems and objects can now communicate…and interact with each other in entirely new ways. • The internet of people is nearly 2 billion strong. Almost one third of the world’s population will be on the web by 2011. • There will be nearly 4 billion mobile phone subscribers worldwide by the end of 2009. The Connectivity of things:from vehicles to — appliances, cameras, roadways, pipelines, even livestock — will grow into the trillions of connections.

8. We can now sense & respond to changes more quickly and accurately…get better results, and begin predict future conditions. Every day, 15 petabytes of new information are being generated. This is 8x more than the information in all U.S. libraries. An average company with 1,000 employees spends $5.3 million a year to find information stored on its servers. Business Analytics & Optimization:is necessary to help us make sense out of the massive amounts of data generated by these intelligent devices. Intelligent

9. From an Information Complexity Perspective

10. Aggregation and synchronization of personal cyber-self where desired Data capture, analysis & management Government &Transportation Consumer Electronics Social Networks Automotive Globalization Telecomand others Energy Energy Storage & rapid charging Virtual Communities Resource and power conservation Auto 2020 shows that as business models and industry partnerships evolve, we will need to sense & respond rapidly and intelligently.

11. In 2020, software, electronics, connectivity, propulsion & diagnostics will be the primary drivers of innovation…and generate valuable data. Software Resources & Applications – provide drivers with tools & insights about the vehicle, the road, and the community… to improve the driving experience. Electronic Sensors & Transceivers – inexpensive, yet highly sensitive will collect massive amounts of data about road conditions and vehicle health. Connectivity & Personalization – to and from the vehicle, as demanded by customers, will personalize the ownership and infotainment experience. Engine & Energy Management – will fuel innovation in hybrid systems and charging infrastructures for electric vehicles. Remote Diagnostic & Flashingwill be the focus of vehicle health andself healing, as well as early trend info.

12. (Unstructured Text Analysis) Case Study – Business Intelligence and Warranty Cost Reduction QualityAnalytics Warranty Claim Processing Diagnostics

14. IBM created the Business Analytics & Optimization practice with five market facing disciplines BAO Strategy Business Intelligence & BPM Advanced Analytics and Optimization Enterprise Information Management Content Management BAO Strategy is a systematic plan of action to leverage information improving an organization’s value proposition to its customers, shareholders, and employees. The strategy identifies what needs to be done to utilize information as a strategic asset and includes the business benefits of implementing the strategy. BI and BPM is the provision of services and solutions to enable our clients to translate strategies into plans, monitor execution, and provide insight to improve financial and operational performance. By leveraging BPM, an organization can align business unit goals with corporate strategy through integrated business measurement and reporting processes> To be able to manage business processes in an effective way it is essential to define the relevant KPIs and influencing factors. IBM offers its clients service to optimize processes based on statistical methods and data mining. Solutions for asset optimization and fraud detection. Enterprise Information Management on methods, techniques, and technologies deal with the data architecture, extraction, transformation, movement and loading of data to analytic data stores or repositories. IBM’s BI Framework has defined an integrated architecture with common conceptual, logical, and physical components. IBM offers services to optimize the handling of paper along the entire workflow as well as the structured administration and filing of documents as well as emails. Furthermore IBM advises the implementation of Document Management Systems and processes.

15. Realizing the potential of Business Intelligence. Focus in Value Focus on the core Re-align relationships Exploit Opportunities To capture share Build future capabilities Act With Speed Manage change Take measured risks Get the Data Right Aggregation & access Embrace analytics Get the Connectivity Right To the car, and internally To external partners Get the Business Model Right Explore new partnerships Focus on the driver experience