Innovation and Innovators: The Core of IBM

1. 1 Innovation and Innovators:  The Core of IBM C. Mohan, Ph.D. IBM, ACM & IEEE Fellow IBM India Chief Scientist mohan@almaden.ibm.comhttp://www.almaden.ibm.com/u/mohan/

3. IBM: The Innovators� Innovator! 2006 India IT Innovation Award (with Bharti) ~ $6B/year R&D investment > $90B revenue > 225,000 techies (~60 Fellows, ~500 DEs) Major transformation of company �Near death� experience in early 90s Business model change: services area, � Move from captive markets for IBM technology units to outside customers Collaborative innovation: Sony, Motorola, � Globally Integrated Enterprise (GIE) Getting out of low-margin businesses Joint innovation with clients (e.g., ABN Amro) Innovation culture via diversity

4. Encouraging Innovation at IBM: The Ecosystem Well-defined and highly appreciated technical career path Technical Execs: Fellows, Distinguished Engineers (DEs) Senior Technical Staff Member (STSM), Architects, � Invention disclosures, patent plateaus, Master Inventors: money and peer recognition, factors in technical promotions; extra incentives for �new� areas Rewards: Corporate Innovation / Patent Portfolio awards, Outstanding Innovation / Technical Achievement Awards (OIAs/ OTAAs) Internal and external conferences IBM Academy of Technology (AoT), Architecture Boards Measurement criteria, even in Research division Patents CEO milestones Internal and external awards Product impact Publications

5. Encouraging Innovation at IBM: The Ecosystem Extreme Blue Fast Forward Speed Teams Sharenets IBM Academy Affiliates Innovation Days Thinkplace Briefing Centers Industry Solution Labs Patent Cafes IBM Institute for Business Value

6. 6 IBM Research Worldwide

7. IBM Research Ecosystem

8. Evolution of Research�s Role

9. History of Innovations

10. Research�s Strategic Thrusts

11. Diversity of Disciplines at IBM Research

12. Culture of Innovation External Recognition

13. 14 Years of IBM Patent Leadership - 2006

14. IBM Patent Leadership � 2006

15. Global Technology & Global Innovation Outlook

16. The Global Technology Outlook (GTO) Early identification of significant trends: Forward Looking (2 � 10 years out) Disruptive to existing businesses Potential to create new businesses Exponential changes to a business / Threshold crossings How technology can impact both: Customers Businesses Understand Customer Challenges Diversity of Industries The GTO has a direct influence on IBM�s business and technical strategies

17. Global Innovation Outlook (GIO) Overview In 2004, IBM opened its business and technology forecasting processes for the first time Series of dynamic, free-form brainstorm sessions around key issues and opportunities related to innovation Examines opportunities for business and societal innovation from policy, thought leadership and market development perspectives Brings together broad ecosystem of experts from business, academia, government, citizens� groups, partners, etc. Shares insights openly and pursues new opportunities collaboratively GIO 1.0 focus areas: Healthcare, Government, Work/Life Resulting initiatives: integrated healthcare records; IP reform; global skills forecasting; BCS innovation offerings Greatly expanded in 2005-06 Increased participation by 50% to almost 180 external partners Brazil and India added as Deep Dive locations Increased focus on developing new markets and capitalizing on business opportunities GIO 2.0 focus areas: Future of the Enterprise, Environment, Transportation

18. GIO 3.0 Focus Areas Media & Content: Rethinking content creation, distribution and ownership in the digital realm Fighting piracy Alternate distribution strategies Capitalizing on the �Experience Economy� Africa: Enabling economic growth to accelerate positive change Alternative energy Micro-commerce Disease prevention & management Education Security & Society: Minimizing risk in a global economy Personal identity and security National borders Property and goods

19. IBM India

20. Historic IBM India Employee Town Hall & Global Briefing First ever annual analyst/investor briefing outside US: In Bangalore, June 6-7, 2006 10,000 employees in person in Bangalore with President of India as chief guest and live feeds to other cities with local gatherings in them http://www.abdulkalam.nic.in/scripts/sllatest1.jsp?id=771

21. India Research Lab Selected Project Areas

22. IBM India � Extensive Operations Across India

23. India Software Laboratory (ISL)

24. ISL Engagement Model

25. IBM�s Global Solutions Delivery Model

26. Global Delivery Centers offer capabilities aligned around centers of expertise staffed by practitioners with industry expertise and technology skills

27. Global Business Solutions Center (GBSC)

28. GBSC integrates IBM�s capabilities and its partnerships to develop higher value solutions

29. Global Service Delivery Centre (GSDC) A remote delivery center, based on 12 years experience of delivering Outsourced Infrastructure Management Services A world class infrastructure to deliver: Command Center Services Data Center hosting Services Network Operations and Management Services IT Help Desk Services Services Management Providing services across multiple technologies and platforms Supporting more than 200 Customer Accounts worldwide

30. Ranked World�s No. 1 (Best Managed) outsourcing vendor Forayed into the Domestic BPO industry, with Bharti Tele-Ventures being the first client win Collaborated with IRL to develop innovative tools to further enhance client experience. Significant growth in client acquisition and presence in 10 Centers across 7 locations Continuous innovation for clients using Six Sigma, Automations and Tools IBM Daksh Business Process Services