Innovation That Matters
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1 Innovation That Matters Tim Bousky Delivery Executive IBM Global Services, ASEAN/ South Asia Ho Chi Minh, Vietnam October 5-8,
2 2 The Straits Times Articles Sept 26, 2005
3 Agenda Setting the Scene Strategy & Value Creation Innovation Defined Insight, Invention, Innovation Ingredients for Innovation Living the IBM Values 3
4 Setting the Scene Electronic Business Deregulation Globalization Convergence Disruptive Technologies 4
5 CEO s s Agenda Survey of 465 CEO s by IBM Business Consulting Services 80% cited revenue growth as #1 focus area over next 3 years Your Turn: The Global CEO Study IBM Business Consulting Services
6 Strategy and Competitive Advantage Clearly desirable but Competitive advantage is short lived Competitive advantage is tomorrows requirement Without significant competitive advantage long term result will be zero returns Strategy builds in SUSTAINED VALUE CREATION Continuous improvement Breakthrough thinking 6
7 Technology transcends all industries and can change the status quo very quickly Merloni Washing machines RFID tags on clothes Adjusts the cycle to suit Vending machines in Japan Range of goods and services Payment options Power saving Monitoring and replenishment Automotive innovation 90% electronics by
8 Strategy and Value Creation Breakthrough Competitive Advantage Incremental Substantial Transformational Amount of change required of the enterprise Corporate Strategy for the new millennium IBM Institute for Business Value 8
9 What is Innovation? Invention Innovation Insight Innovation is a societal -- not a technological -- phenomenon, that arises from the intersection of invention and insight. Sam Palmisano, CEO, IBM Corporation 9
10 Pace of Innovation Accelerating Newer technologies taking hold at double or triple previous rates 100 Television Radio Electricity Telephone % Penetration 50 0 Cellular Interne t PC VCR Automobile Years 10
11 The Changing Nature of Innovation It s occurring more rapidly It s more open and requires wider collaboration across disciplines, specialties and borders Technology is embedded technology will create or follow innovation Where business insight and Invention come together.. 11
12 Intersection of Insight and Invention Norwich Insurance Cemex Hertz Company Apollo Group (education) Boston Coach Market Insight Good drivers want cheaper rates for their track record Expensive capital lying idle waiting for deliveries Travellers will pay a premium for convenience Adults want education but are time constrained Customer sat and Operational efficiencies must improve in synch Innovation Pay as you drive Insurance Reduce deliveries from 3 hrs to 20 mins Neverlost Navigation and check in On Line learning options Proprietary scheduling algorithms/ optimization Innovation Invention GPS and wireless technologies Satellite tracking and Scheduling Hand held devices and satnav Distance Learning Technologies Data Analytics Technologies 12
13 IBM and Innovation a Rich History 13 Past Innovation Magnetic Storage Relational Databases DRAM RISC Recent Innovation Copper Deep Blue Silicon Germanium Futures Carbon Nanotubes Millipede Storage Autonomic Computing People 5 Nobel Laureates 7 winners of National Medal of Technology 3 winners of National Medal of Science 10 members (for 5 inventions) of National Inventors Hall of Fame
14 Innovation in IBM Global Services IBM Research & Development IBM Business Consulting Services IBM Institute of Business Value IBM Software Labs Invention Innovation Insight Best of Blue EBO s Emerging Business Opportunities Global Technology Outlook IBM Academy Engineering and Technology Services Extreme Blue First of a kind (FOAK) IBM Business Partners Global Innovation Outlook 14
15 Taking our innovation leadership to our clients in ASEAN/SA India Research Labs Services Innovation Research Center One among 8 facilities worldwide Cutting-edge research in the areas of electronic commerce, supply chain management and distribution, cellular and mobile telephony systems, e-governance and distance learning Taking IBM s innovation leadership to our clients globally & in India First of its kind Centre worldwide - innovative technologies for improving IT services - workforce efficiency, asset reusability, improved methodologies and delivery capabilities on a global scale India Software Labs IBM Software products: Support & Development Product development and support for all IBM SWG groups 15 Solutions Architecting (Retail, Finance), Linux, Web Services, Grid Computing, Autonomic Computing and RFID for clients globally & in India
16 World Community Grid Applying the power of the world s 650 million PCs to humanity s toughest issues Five-year study to use the world s largest collection of DNA samples to map how humankind populated the planet Most ambitious genetic anthropology research initiative in history Goal: Enable researchers to better understand the connections and differences that make up the human race The Genographic Project Landmark Study of the Human Journey Provide researchers with a readilyavailable pool of computing power to speed solutions to human diseases Fuel the Human Proteome Folding Project Develop applications to help predict natural disasters and address world hunger 16
17 METRO Group Realization of a pilot supermarket in Germany Application of RFID technology: to identify products provide staff with real-time product information automated and integrated supply chain In-store innovations from intelligent weighing machines to a self-checkout 17
18 Cirque du Soleil Effortless access to critical information One of the world s foremost entertainment brands with 10 different shows across four continents A partnership to design and implement a global wireless solution using open standards technology 18
19 Ingredients for Innovation Burning Platform build into Strategy Processes and culture Leverage and reward Partnerships 19
20 Thank you! Tim Bousky Director, Service Delivery ASEAN/SA IBM Global Services 9 Changi Business Park Central 1 Singapore Tel: timb@sg.ibm.com 20
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