Smarter Workforce Services Business Process Innovation

1. Smarter Workforce Services Business Process Innovation

2. A Smarter Workforce has access to the full breadth and depth of IBM capabilities. 1,110 software products in the IBM portfolio 430,000 IBMers, in 170 countries, speaking 165 languages 3,000 active researchers, including 5 Nobel Laureates 6,478 U.S. patents in 2012 alone 20 consecutive years of U.S. patent leadership 120,000 Global Business Partners Rich enterprise cloud computing capabilities with over USD5B in cloud acquisitions to date USD6B invested in research and development each year 65,000 Service Delivery personnel USD16B in analytics softwareacquisitions alonesince 2005 9,000 business analytics consultants with industry experience 20 consecutive years of U.S. patent leadership

3. A combination of forces presents promising opportunities, higher expectations and new challenges 85% of consumers expect a seamless experience across all channels from a retailer 95% of airlines plan to increase mobile interactions in the next 5 years Social 67% of global consumers want to use mobile devices to check out 72% of bank CEOs identify customer insights as the most critical area for investment Mobile Cloud Analytics Cloud 33% of consumer data will be stored in the cloud by 2016 80% of new apps will be distributed or deployed via the cloud Analytics 3

4. External partner collaboration Customer collaboration 61% 90% CxOs foresee partnering to increase value as a major change to impact the business landscape with more than half sourcing innovation from outside CxOs plan to collaborate much more extensively with their customers Expanded partner networks Supply chain integration 73% 74% CFOs in outperforming enterprises anticipate working with an expanded partner network CSCOs plan to break down barriers by integrating their supply chains and making them more visible …driving C-suite leaders to collaborate more broadly to enable and accelerate innovation C-suite collaboration The Customer Activated Enterprise 92%of outperforming enterprises often have C-suite leaders that collaborate and work together better Source: IBM Institute for Business Value - The C-suite Study 2013, The Customer Activated Enterprise. Study results based on in person interviews with 4,183 top executives across 20 industries in 70 countries representing both private and public sector organizations 4

5. 1.6M employees are served including 263,000 retirees through our HR operations across 104 countries and 27 languages 60M transactions are managed for banking clients annually across customer support, product servicing, trade finance, collections and risk management Value by the numbers—snapshot of business process innovation across multiple industries 120M customer calls are handled in a year from 42 delivery centers around the world USD5B annuity assets are under administration with us and 75,000 new insurance policies are issued annually 28M customer interactions in a year are supported through non-voice channels such as email, chat, text messaging, social media and web, leveraging our multi-channel capability USD57B in procurement spend is managed on behalf of our clients 5

6. Services enabling organizations to create a Smarter Workforce • Talent Acquisition • High Volume Hiring • Industry Alignment • Quality of Hire Analytics • Talent Analytics • Retention Analytics • Survey Analytics • Talent Optimization • Social Learning Offerings • Learning Content Marketplace • Learning Analytics and Dashboards Behavioral Sciences • Behavioral Assessments • Fit Assessments • Skills Assessments 6 6