Delivering the Business Value of Information

1. Delivering the Business Valueof Information New York City February 16, 2006

2. Today’s NewsIBM Intensifies Information Management Investments • IBM announces new investments to help clients deliver more business value from innovative uses of information • $1 billion in new software investments over the next 3 years • 65% more practitioners with relevant skillsover the next 3 years,adding to a base of 15,000 practitioners • IBM announces a framework for success • IBM Information On Demand Center of Excellence • New and expanded products & offerings Information is the competitive differentiator in the global economy

3. February 16 NYC Information On Demand Event • Delivering the Business Value of Information • Steve Mills, IBM Senior Vice President • Ginni Rometty, IBM Senior Vice President • Real World Experiences • Robert Schwartz, CIO Panasonic USA • Derek Danois, President i3Archive • Dr. Vasant Dhar, Professor, Information Systems Stern School of Business, New York University • Hon. Scott Vanderhoef, County Executive Rockland County, New York • Joseph Monk, CIO, Retail & Channel Technology Wachovia Bank • David Cearley, Panel Moderator Vice President, Gartner Research • Executive 1:1s, Lunch, Demonstrations

4. Delivering the Business Valueof Information Ginni Rometty Senior Vice President IBM Enterprise Business Services Steve Mills Senior Vice President and Group Executive IBM Software Group

5. The Information ChallengeInformation is in Silos… Trusted Information is Not Available Today’s business challenges mandate a fresh approach to managing information. Managing information in silos has become obsolete. Globalization, M&As Risk & Compliance, Eroding Customer Loyalty, Supply Chain Complexity, Industry Transformations, Cost Cutting… Multiple Versions of the Truth Inaccurate, Untimely Inconsistent Incomplete, Inaccessible Out of Context… Information Must Become a Strategic Asset 5X More Value creation by organizations effective at using Information as an Asset 60%+of CEOs: Need to do a better job leveraging information 70% of people’s time can be spent searching for relevant information Sources: IBM Attributes & Capabilities Study, 2005; Client Interviews 2004; IBM CFO Study, 2006

6. Information at the Scene Transforms Crime Fighting Crime Statistics & Reporting A 360 View of the Client Transforms Customer Care Customer Treated as Multiple Accounts A Single Version of the Truth Transforms Compliance Financial Information in Spreadsheets and e-Mails Information Analysis Speeds and Transforms Health Care Claim Complexity, Volumes, Fraudulent Practices Free Flowing Supply Chain Information Transforms Retail & Manufacturing Excess Inventory, Lost Sales Out of Stock Warehouses, Added Cost The capability now exists. Integrated Software Platform Business Know How Information as a Strategic AssetEarly Adopters are Establishing a Competitive Advantage Point Projects Information as a Strategic Asset Experience with over 500 Clients Sources: IBM Analysis of Industry Estimates; Market Opportunity for 2009, CGR from 2005-2009

7. Information at the Scene Transforms Crime Fighting Crime Statistics & Reporting A 360 View of the Client Transforms Customer Care Customer Treated as Multiple Accounts A Single Version of the Truth Transforms Compliance Financial Information in Spreadsheets and e-Mails Information Analysis Speeds and Transforms Health Care Claim Complexity, Volumes, Fraudulent Practices Free Flowing Supply Chain Information Transforms Retail & Manufacturing Excess Inventory, Lost Sales Out of Stock Warehouses, Added Cost The capability now exists. Integrated Software Platform Business Know How Information as a Strategic AssetEarly Adopters are Establishing a Competitive Advantage Point Projects Information as a Strategic Asset $69 Billion 18% CAGR* $19 Billion 6% CAGR* Experience with over 500 Clients Sources: IBM Analysis of Industry Estimates; Market Opportunity for 2009, CAGR from 2005-2009

8. “…Comprehensive, highly relevant, instantaneous information… transforming the way we solve crimes…” In context, in the hands of detectives, at the scene… “…Shorty…” Relationships of Interest Suspect 1 Positive ID Previous Arrests Known Addresses Recent Summons Parolees In Vicinity Suspect 2 Positive ID Arrests & Linkage to Crimes in Other Precincts

9. Information Becomes a Strategic AssetTimely & Accurate Information Fights Crime Need for on-scene insight from billions of records across multiple police databases Correlate arrests, complaints, summonses, homicides, shootings, locations, 911 calls… Key to Success • Timely Delivery of Structured and Unstructured Information Result • Timeliness means the difference between life & death • Information reaches detectives within minutes, instead of days or weeks • Rapid trend analysis improves resource deployment • Rapid repeat offender identification

10. Information Becomes a Strategic AssetSeparating Information & Process Enables Enterprise-wide Re-use Business required an integrated view of customer information across multiple business units within the bank after mergerCustomer information stored across disparate environments - IBM ImagePlus, FileNet Image Services, Mobius…. Key to Success • Good Business Design - Separation of Information & Process Result • 50X increase in requests for content shows customers are being served better • $2.3 million savings in 2 years; 64% ROI • $1M savings for each new business unit needing a common view of the client

11. Integrated Software Platform Moving From a Project-Based to a Flexible Architecture • Deliver Information in Business Context In-context, In Line Effectively Governed • Integrate Information Structured / Unstructured Timely & Accurate Manage Complexity Open Standards Flexible & Resilient Infrastructure

12. IBM Information On Demand SoftwareUnparalleled Breadth and Depth • Deliver Information in Business Context Industry Models Master Data Management Entity Analytics Discovery Services New Products 500+ Clients • Integrate Information WebSphere Information Server New Product 5,000+ Clients Share Leaders

13. Delivering the Business Valueof Information Ginni Rometty Senior Vice President IBM Enterprise Business Services Steve Mills Senior Vice President and Group Executive IBM Software Group

14. Information is the Critical Business IssueInformation is at the Core of 3 Pervasive Trends Globalization Integration Innovation

15. Quality Engineering Compliance Client Care Business Analysis Intelligent Trade Lane Fraud & Abuse Management Information Enables Business AdvantageGlobalization, Integration and Innovation

16. New Investment IBM Information On Demand Center of ExcellenceDelivering Business Value through Innovative Uses of Information • Focus • Develop Offerings, Techniques and Methodologies to Accelerate Client Value Creation • Staffed with leading industry expertise • Helping Clients Get Started • Business Value Assessment • Define strategic business opportunities • Develop economic value realization scenarios • Tailor IOD offerings • Information Maturity Health Check • Provide prescriptive actions for the enterprise to better support its business with information • IOD Strategy and Roadmap • Assess current state • Compare current state to IOD vision • Provide a transformation roadmap New Offerings

17. IBM Provides a Complete Portfolio of OfferingsBased on Client & Internal Experiences New Investment 65% more practitioners…adding to a base of 15,000 practitioners with relevant skills New & Expanded Solution Portfolios

18. Globalization Integration Innovation

19. Real World Experiences:A Panel