Steven Gibbs IBM Business Analytics Channels Sales Leader NEIOT 2010 IBM Corporation

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1 Business Partner Strategy 2011 Switzerland Steven Gibbs IBM Business Analytics Channels Sales Leader NEIOT 2010 IBM Corporation

2 Agenda 11:00-11:30 Renewals Licensing, Migrations, Pricing, 11: Software Value Plus 2.0 (SVP2.0) IBM Corporation

3 2011 The Year of Change and growth In Addition to Cognos ASL Opportunities OpenPages Clarity FSR Opportunity SVP from April 1 st SVI is the key Rebates to improve margin Therefore Paid for Achievement MM Products that need your knowledge to capitalise IBM Corporation

4 Ok So What s New Deal Clinics These are NOT another inspection of your pipeline But an opportunity to develop a strategy to target a potential or explore the viability of a potential engagement SVP Standard SWG agreement Discount changes Renewals VARs can process renewals on behalf of IBM direct customers (rather than selling S&S) and are eligible for a small margin. New Opportunity with Clarity Targeting the Finance Management Sector New Challenges? Industry Solution Accreditation Business Analytics capability Accreditation Co-Marketing CX 9.5 Training IBM Corporation

5 SVP Solution Industry Authorization An Initiative for Industry focused BPs SVP Industry Authorization* Requirements Benefits Skills Financial Incentive Industry Solutions Board Review Marketing Industry Framework Assets & Training *Note: Available in countries where SVP Authorization has been implemented IBM Corporation

6 SVP Solution Capability Authorization Benefits SVI Solution Incentive Lead Passing Priority SVP Capability Authorization Mark Requirements SVP Authorized for Business Analytics Sales and Technical Certifications Board Review/Assessment Branded or Market Identifiable Offering Repeatable Solution Assets Service Implementation Methodology Solution Support References and/or Implementations Existing VAP solutions do not automatically qualify for Capability Solution Security Private Cloud Information Integration Master Data Management Business Analytics Enterprise Content Management Availability of Program Incentives may differ by region IBM Corporation

7 Cognos Express 9.5 Training As this is an evolution rather than a revolution it build o to your 9.0 knowledge and skills There is a set of recordings for CX 9.5, given by a trainer. Cover the differences between CX 9.0 and CX 9.5. The assumption is that you have undertaken the 5 day 9.0 training, Then can watch the self-paced recordings. They are free of charge and can be found on the IBM Learner Portal: ( look for course code A3514i IBM Corporation

8 SVP Pricing Example (varies by geography) GB-MM GB-LE IA Entitled Retail Price $100 $100 $100 Suggested Margin to VAR $5 $5 $5 Suggested GB Incentive $15 $8 0 Suggested Support Provider Offering $15 $15 $15 Suggested Value Advantage Plus* $20 $15 $15 Mutually Exclusive SVI ID $10 $10 $5 SVI Sell* or $10 $10 $5 SVI Capability Solution* or $30 $25 $20 SVI Industry Solution* $30 $25 $20 *Payments for SVI sell, Value Advantage Plus, SVI Capability Solution and SVI Industry Solution are all mutually exclusive IBM Corporation

9 IBM BA Business Partners Best Place to Be! High Growth Market Highest IT, LOB Priority In IBM s Top 4 Priorities Best Products and Roadmap Expanding Portfolio Extraordinary BAO Synergies BP-Specific Products & Plays Focus on Value, Solutions Best Team in the Industry Best BP Program The Opportunity of a Lifetime! IBM Corporation

10 Dashboards/Reports Planning Analysis IBM Corporation

11 CIOs Top Priority Business Analytics 83% Virtualization 76% Risk Management & Compliance 71% Mobility Solutions 68% Customer & Partner Collaboration 68% Self-service Portals 66% Application Harmonization 64% Business Process Management 64% SOA / Web Services 61% Unified Communications 60% IBM Corporation

12 3x 5.4x Organizations who are leading in analytics outperform those just beginning by 3X Top Performers are 5.4X more likely to use an analytic approach over intuition Source: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute of Business Value study. Copyright Massachusetts Institute of Technology IBM Corporation

13 Business Analytics Software Strategy Industry Specific Analytics Core Business Intelligence & Financial Performance Management Broad Enterprise Business in Predictive Customer Analytics Risk Management Industry & Functional Applications Finance / Risk / Fraud Analytics Customer Analytics Human Capital Analytics A N A L Y T I C A R E A S Supply Chain Analytics Business Intelligence & Performance Management Predictive Analytics and Optimization BAO Integration & Simplification Enterprise Information Management Enterprise Content & Collaboration Globally Integrated, Market Leading Capabilities IBM Corporation

14 Gartner: 2011 BI Platforms Magic Quadrant (Jan/11) IBM Corporation

15 Business Analytics Leadership Better Business Outcomes Cognos 10 Massive scale analytics Cognos TM1 Cognos Express Cognos 8 Mashup Service Content Analytics Smart Analytics New System Analytic Applications Cognos Customer Insight System z support Information regarding potential future products is intended to outline our general product direction and it should not be relied on in making a purchasing decision. The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract. The development, release, and timing of any future features or functionality described for our products remains at our sole 15 discretion IBM Corporation

16 Business Analytics and Optimization (BAO) Services Customer Analytics 2009 Federal Govt Security 2010 BAO Software Predictive Analytics 2009 Web Analytics 2010 Governance, Risk & Compliance 2010 Financial Reporting 2010 Foundation Data Discovery 2009 Cloud Data Integration Data Capture & Content Management 2010 IBM Corporation 2009 Database Monitoring & Protection 2009 Data Integrity & MDM 2010 Data Warehouse Appliances 2010

17 New! Midmarket and Departmental Solutions IBM Cognos Express 9.5 IBM Cognos Express Planner Purpose built planning application Rapid deployment of managed planning applications Rich contribution client Planning Workflow Universal data advisor Extend to relational Windows 2008 support Enhanced dashboard capabilities with CX Advisor New licensing/pricing Consumer and discounted complete package Non Production Server IBM Cognos Express Partner Promotions Q Launched January 2011! 1. Ongoing Incentive promotion - to 'reset' the entitled PPA IBM Cognos Express prices (new customer authorized selling price) for select countries in all IOTs 17 IBM Confidential 2010 IBM Corporation

18 Business Analytics New! Financial and Risk Analytics Solutions OpenPages software helps businesses establish and maintain a comprehensive compliance and risk management process across a variety of risk domains including operational risk, financial controls management, IT risk, compliance and internal audits. 18 Clarity software enables organizations to automate the process of collecting, preparing, certifying and controlling financial statements for electronic filing, in support of mandates by the SEC (including XBRL) and other financial regulatory agencies IBM Corporation

19 New! Predictive & Customer Analytics The stage is set! Enterprise & SPPS Business Partners Momentum Focus Area: Customer Care & Insight Solutions: Cognos Consumer Insight, SPSS DM 6.0 Two new Portfolios for BPs in SVP: SPSS Statistics SPSS Enterprise IBM Corporation

20 Supporting Charts IBM Corporation

21 New! IBM Cognos Consumer Insight Analytics that listen, measure and analyze social media Competitive Analysis Business Drivers Corporate Reputation Customer Care Campaign Effectiveness Product Insight Source Areas FACEBOOK BLOGS DISCUSSION FORUMS COMPREHENSIVE ANALYSIS Keyword Search Dimensional Navigation Drill Through to Content Product Capabilities SENTIMENT Dimensional Analysis Filtering Voice TWITTER NEWSGROUPS AFFINITY ANALYTICS Relationship Tables Relationship Matrix Relationship Graph EVOLVING TOPICS Relevant Topics Associated Themes Ranking and Volume MULTILINGUAL IBM Corporation

22 IBM Business Partner Program Evolution SOFTWARE VALUENET SOFTWARE VALUEPLUS 2.0 Protect Acquired BPs Controlled Distribution High quality BPs Support Providers SVI Id & Sell VAP for Government Industry Authorization BP Led Model (BPLM) Maintain BP Profits Reward BPs for Value Industry Specialization Quality, Excellence IBM Corporation

23 Get Ready to Make $$$ with SVP! FOCUS & INCENTIVES Generate Opportunities Self-Sufficiency BA Capability Solutions GB Focus, Deals < $50K Industry Specialization IBM SUPPORT & RESOURCES Co-Marketing, Campaigns Learning Center, YPWP, etc. Solution Capability Team CX, VADs, BPLM, etc. Training, Certifications The More VALUE you provide, the higher your benefits $$$ and profitability IBM Corporation

24 BA Business Partners commitment to training & enablement! BA Certifications 5,079 4,854 Upcoming Certifications! SPSS Stats, Enterprise Cognos Express Clarity FSR More BA BP Enablement Sales Mastery Partner Learning Center WW Partner Rallies Technical Bootcamps Etc > $580K Reimbursed to BA BPs through YPWP Program! YPWP BA limits eliminated in 2011! Partner World Benefit Member Advanced Premier YPWP, YTWP $6,000 cap $15,000 cap $50,000 cap IBM Corporation

25 The power of Business Analytics 11.3% > 20x more 14.0% 49% 30% more more 12.1% 9.4% 9.3% 0.5% EBITDA 5-year CAGR, Revenue 5-year CAGR, ROIC 5-year average, Value Integrators All other enterprises Revenue 25 Growth: N = 580; EBITDA: N = 531; ROIC: N = 501; 2010 IBM Corporation Source: IBM Institute for Business Value, The Global CFO Study 2010

26 Channel Incentive Model for SVP Transactional / Commercial (Illustrative) ID only Sol GB MM GB MM ID& Sell GB MM ID only Sol GB LE GB LE ID& Sell GB LE ID only Sol Ent. ID& Sell 10% 10% Sol GB MM 20% 10% 10% Sol GB LE 20% 5% 5% Sol 10% 30% 30% 25% 25% 20% 20% Reseller 20% 3 8% 1 15% 3 8% 1 15% 3 8% 1 15% 2 15% 2 15% 2 GB MM GB LE Ent. 15% 15% 15% 15% 15% 8% 8% 8% 8% 8% No Incentive No Incentive No Incentive No Incentive No Incentive 5% of Base Discount Assumed Passed Note: Percentages shown for GB incentive, Value Advantage Plus and Support Provider are suggested percentages provided by VAD. Support Provider compensation is off a uniquely calculated price. Base Discount GB Instant Rebate SVI Solution Value Advantage Plus BPLM Support Provider 1 If target met additional 7% 2 Margin for Cognos. In case of SPSS margin is 20%. Percentage varies by Product Group. 3 SVI Solution and VAP boxes are mutually exclusive IBM Corporation ID & Sell

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