IBM Software. How are we strong, how are we different? Paweł Sobczak General Business Sales Executive IBM Software Group, Northeast Europe
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1 IBM Software How are we strong, how are we different? Paweł Sobczak General Business Sales Executive IBM Software Group, Northeast Europe Vilnius, October 29 th, IBM Corporation
2 Agenda Trends with most business impact IBM Software Strategy Acquisitions Market Leadership Selected Success Stories in similar markets 2 IBM Software Day - Vilnius, October 29 th, IBM Corporation
3 Trends with the most business impact in 2010 Global integration Participatory internet Workforce demographics Software as a service Virtualized data and devices Simplicity from design Integration & Innovation Source: IBM 2010 CIO Outlook 3 IBM Software Day - Vilnius, October 29 th, IBM Corporation
4 IBM Software Group - Northeast Europe Integration foundation: Services Oriented Architecture SOA Manage Store/Channel Supply Chain & Finance Business CustomersMerchandisingOperations DistributionAdministration Administration Insights Store/Chan nel Strategy Labor Vendors Store Design Distribution Customer Sat. Supply/ Inventory Demand Promotions Space Mgt. Order Mgt. Customer Accts. Customer Directory Planning SCM Financial Planning Alliances LOB Planning Perf. Mgt. MI Process Design Legal/Reg Market Mgt. Logistics Finance Procurement Store Mgt. Distribution Ops. Treasury Real Estate Transportation Item Mgt. Store Services HR Back Office Product Inventory Accounting IT Directory Vendor Mgt. Portal Service 1. Gartner Research, IBM Software Day - Vilnius, October 29th, 2008 SOA/REST Service Request B2B Interaction s Service Flow You will waste your investment in SOA unless you have enterprise information that SOA can exploit." 3. Strategy IPT Tactics CRM Execution Channels Transformation View SOA builds a foundation of application and data services that permit business agility and encourage the reuse and remixing of components Data Existing Application s New Service Logic IBM Corporation
5 Innovation foundation: Web 2.0* patterns Service, not software User-driven adoption Value on demand Low cost of entry Public infrastructure Easy to use and remix Responsive UIs (AJAX) Feeds (Atom, RSS) Simple extensions Mashups (REST APIs) Users add value Recommendations Social networking features Tagging User comments Community rights management *We use the expression Web 2.0 here because of its common usage, it is generally synonymous with the IBM term Situational Applications. This paper is a good introduction: 5 IBM Software Day - Vilnius, October 29 th, IBM Corporation
6 Innovation: Software as a Service (SaaS) The new generation of hosted software is: Simpler to use Easy to deploy and manage Easy to customize As capable Often easier to integrate Lower cost 6 IBM Software Day - Vilnius, October 29 th, IBM Corporation
7 Enterprise 2.0 (E2.0) This combination of SOA, Web 2.0 patterns and SaaS is the core of the 2010 CIO Outlook strategy Some analysts call this Enterprise 2.0* What is the business value? User driven innovation in search, data quality, customer insight, process improvement, etc. Simpler more productive solutions for everyone, especially mobile employees Integration of user tasks, business processes and social awareness to improve quality of results Reduced cost and higher employee satisfaction Innovate E2.0 solutions for our clients * Andrew McAfee, Sloan Management Review, Spring 2006 Enterprise 2.0 Spectrum Social Friending Blogs Blog comments Tagging colleagues Reputation evaluations Open wikis Tagging documents Open 'Activities' (task scripts) Using browser scripts Scripting formal processes Extending internal apps. (via script) Writing Situational Applications Desktop widgets Data APIs REST Services APIs Web Services Technical 7 IBM Software Day - Vilnius, October 29 th, IBM Corporation
8 Our Clients Challenge BUSINESS OBJECTIVES Innovation Top line growth Increase efficiency Reduce costs Gain Market share Complex processes & systems Complex applications & interfaces Difficult to adapt quickly Large portion of IT budget spent on maintenance, not on new value add investments RESOURCES & IT ASSETS Legacy claims database Auto Claims Systems Home Claim Systems Life Insurance Claims Partner Claims Systems 8 IBM Software Day - Vilnius, October 29 th, IBM Corporation
9 IBM Software Strategy Enabling innovation in a complex world Providing a next-generation open integration platform Built on a Service Oriented Architecture (SOA) Customized for industry specifics 9 IBM Software Day - Vilnius, October 29 th, IBM Corporation
10 Providing a Next-Generation Open Integration Platform delivering proven value to solve real business problems Empowering People to share their passion and expertise, foster collaboration and innovation, and improve business efficiency, decision-making and responsiveness Information On Demand to unlock the business value of information for competitive advantage Service Management to enable innovation by reducing operational labor, improving asset productivity and quality of service Built on an Open IT architectural foundation that supports integrating IT and business processes as linked services Business Process Flexibility to develop and rapidly deploy innovative business models with flexible, optimized processes Software Lifecycle Management to better govern the business process of software and systems delivery, enabling innovation at lower cost 10 IBM Software Day - Vilnius, October 29 th, IBM Corporation
11 Built on a Service Oriented Architecture Flexible IT Infrastructure Organizations Depend On Adopting a business-centric approach: According to WinterGreen Research: SOA Market Leadership 2006 Market Share Other 20% Solution building efficiency Reuse of existing assets Flexibility in changing and adapting business processes Oracle 3% SAP 3% Sybase 2% webmethods 3% BEA AquaLogic 2% Tibco 3% Sun / SeeBeyond Egate 3% Microsoft 8% 53% Worldwide Services Oriented Architecture (SOA) Engine and Collaboration License, Services and Maintenance Market Shares, 2006 Source: WinterGreen Research, April SOA Engines and Components only 11 IBM Software Day - Vilnius, October 29 th, IBM Corporation
12 Customized for Your Industry IBM Industry Frameworks = IBM Middleware + Industry-Specific Extensions + Industry Standards Support Industry-specific extensions and accelerators that exploit key industry standards Process and data models supporting key business area usage patterns, built on an SOA foundation Offerings from IBM and its Business Partners to implement business processes that drive innovation Product Development Integration Framework Retail Integration Framework Software Architecture for Energy & Utilities Payments Framework for Financial Services Information Integration Framework Service Provider Development Environment 12 IBM Software Day - Vilnius, October 29 th, IBM Corporation
13 IBM Software Growth 2nd Largest Software Vendor in the Industry $ 20 B The Market Share Leader in Middleware Reuters June 18, 2007 International Business Machines is banking on software, which accounts for 20 percent of revenue but generates 40 percent of pretax earnings, to lift overall profitability of a company that spans computer hardware, services and software. 13 IBM Software Day - Vilnius, October 29 th, IBM Corporation
14 Expanding Our Platform Through Acquisitions Bold Market Entry Complementary Point Products Opportunistic Consolidations Market Leadership High profile entry Leverage IBM Strengths Highly complementary technology buys Gain time to market Companies with significant revenue streams Retain customers and leverage install base Buy market leaders in growth segments Strong ecosystems Large customer install bases Achieve cost and expense synergies Usually command premium valuations e.g. e.g. e.g. e.g. 14 IBM Software Day - Vilnius, October 29 th, IBM Corporation
15 15 IBM Software Day - Vilnius, October 29 th, IBM Corporation
16 IBM Software - Vision and Execution Ability to Execute Gartner s Magic Quadrant Challengers Niche Players Leaders Visionaries Completeness of Vision IBM Software in the Leaders Quadrant Appl Infrastructure for Back-End Application Integration, 2Q07 Appl Infrastructure for Composite-Applications, 2Q07 Appl Infrastructure for New Service-Oriented Business Application Projects, 2Q07 Application Infrastructure, 2Q07 Business Process Analysis Tools, 2H07-1H08, 2Q07 Data Integration Tools, 4Q07 Data Quality Tools, 2Q07 Data Warehouse DBMS, 4Q07 E-Commerce, 1Q07 Enterprise Asset Management for Manufacturing, 3Q07 Enterprise Asset for Transmission and Distribution, 3Q07 Enterprise Asset Management for Power Generation, 3Q07 Enterprise Content Management, 3Q07 Horizontal Portal Products, 2Q07 Information Access Technology, 3Q07 Storage Resource Management and SAN Mgmt Software, 1Q07 User Provisioning 2H07 (Security), 2Q07 Web Access Management 2H07, 4Q07 Web Conferencing 2007, 2Q07 16 IBM Software Day - Vilnius, October 29 th, IBM Corporation
17 Being market leader across our portfolio Information Integration Content Management Social Networking Collaboration Lotus Information Management WebSphere Architecture & Construction Rational Tivoli SW Lifecycle Mgt Quality Mgt Systems Mgt Storage WebSphere Integration Server Web Application Server Portal Server Information Management Lotus Tivoli Key Product Segments Enterprise Content Management Information Integration (incl MDM) Database Engines & Tools Collaboration IBM Share Position #1 #1 #1 #1 #2 #1 #1 #2 #2 #2 #2 Data Services Security Security Management Storage Management #1 #3 Rational #1 Application Servers Process Servers Portals Software Configuration Mgmt Software Lifecycle Mgmt & Governance #1 #1 Sources: IBM Finance, IBM Market Analysis, Company Reports, IDC Software Tracker 17 IBM Software Day - Vilnius, October 29 th, IBM Corporation
18 Leveraging IBM s Globally Integrated Team Canada 350,000 + IBM Employees WW 30,000 + Developers 100,000 + Sales, Support & Marketing Major R&D Locations United States California Massachusetts Minnesota New York North Carolina Texas Brazil Dublin Staines Hursley Paris Rome Boeblingen Krakow Cairo Haifa India Bangalore Pune Hyderabad Gurgaon China Beijing, Shanghai Malaysia Singapore Perth Taiwan Yamato Gold Coast Sydney Canberra 45,000 + SW Employees WW 20,000 Developers 15,000 + Customer Facing Employees including over 5,000 Field Technical Support and 3,800 Lab Services plus over 30,000 SW Business Partners 18 IBM Software Day - Vilnius, October 29 th, IBM Corporation
19 Client Success Stories 19 IBM Software Day - Vilnius, October 29 th, IBM Corporation
20 Impol - Slovenia Producer of extruded metals (aluminium) 1800 employees, 486m revenue in 2007, 5 th largest exporter in Slovenia Challenge - risk management system to control complex business processes (aluminium prices contracts, futures on London Metal Exchange) Solution - SOA toolbox, modification of existing data structure, integration of physical market with LME Key Business Benefit ROI in 5 months IBM Business Partner Alcad Technology IBM Websphere software 20 IBM Software Day - Vilnius, October 29 th, IBM Corporation
21 Alexandra Group - Bulgaria Leading movie distributor and cinema operator in BG Challenge plan to open 8 cinema multiplexes, not sufficient theater management system leading to large staff at each facility need to improve service convenience and optimize administrative costs Solution centralized multiplex information management system built on IBM technology, supporting also online and kiosk-based ticket purchasing Key Business Benefits ability to add new multiplexes without compromising customer service, reducing onsite administrators from 15 to 1 leading to cost savings IBM Business Partner IBS Technology IBM Websphere & DB2 software 21 IBM Software Day - Vilnius, October 29 th, IBM Corporation
22 Novart Oy - Finland Furniture producer 500 employees, 90m revenue in 2007 Challenge communicate product and delivery information to network of resellers (traditionally done by post slow, expensive, unreliable) Solution intranet, extranet and content management solution integrated with existing ERP system Key Business Benefit integrated solution delivering live business data directly to resellers, saving time and money on communication, no need to re-enter data to different systems IBM Business Partner Sofor Technology IBM Lotus software 22 IBM Software Day - Vilnius, October 29 th, IBM Corporation
23 Thank You Pawel Sobczak 2008 IBM Corporation
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