AIMIA V21 - David Murray

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Building a smarter planet is IBM's point of view on how interconnected technologies are changing the way the world literally works . That is, the systems and processes that enable: physical goods to be developed, manufactured, bought and sold; services to be delivered; everything from people and money to oil, water and electrons to move; and billions of people to work, govern themselves and live .

CORE UNCERTAINTY DRIVERS Digital/multi-platform distribution, advertising evolution Business model uncertainty – protecting core revenues, growing digital Technology players disrupting business, shifting revenue flow (e.g. iTunes, Xbox, TiVO) Shift from “audience” to “consumer” focus CORE UNCERTAINTY DRIVERS Digital/multi-platform distribution, advertising evolution Business model uncertainty – protecting core revenues, growing digital Technology players disrupting business, shifting revenue flow (e.g. iTunes, Xbox, TiVO) Shift from “audience” to “consumer” focus Piracy threat in both virtual and optical Piracy threat in both virtual and optical media placing price pressure

Interconnected Smart media companies put the consumer at the center of their business and focus on consumer’s changing demands and behaviors, make sense of it, and apply it in real time to provide better personalization of content and an overall more compelling experience. Smart media companies develop a new customer connection paradigm that shifts the focus from talking to listening, and partners to deliver information that integrates context and presence and exploits the capabilities we have as humans communicate. Deliver assets that capture, retain, and grow customer base. Instrumented Smart media companies are moving from “hardwired” value chain processes to automating digital production and distribution processes, lowering costs, increasing operational efficiencies and improving agility in a rapidly changing environment. Intelligent Smart media companies turn data into intelligence to more effectively understand consumer behaviors and preferences, do cross-channel promotion, identify and target key influencers in the consumer network, and transform from “reaction” ad spend to intelligent “action” ad spend.

Seeing without being there. (review examples chosen on the slide by the seller to demonstrate instrumented across a range of solutions and industries most relevant to the client.)

Tata Sky - Smarter IT for Media and Entertainment Seeking to enter the newly opened direct-to-home Indian satellite television market, TATA chose IBM to launch a new business starting from scratch. Tata Sky, the service-oriented architecture-based business resulting from this first-of-its-kind “green field” project, was launched in only six months. Within a year of its operations, the company had signed up its one-millionth connection – a world-record growth rate for direct-to-home broadcasting. For more information, visit http://www-01.ibm.com/software/success/cssdb.nsf/cs/JSTS-7MWTNF?OpenDocument&Site=gicss67mdia&cty=en_us Bharti Airtel grows at a stunning phase by keeping its focus on the customer Bharti Airtel entered into a comprehensive 10-year agreement with IBM to transform its processes and take on the management of its IT infrastructure. Its new platform provides a standardized framework for Bharti Airtel to integrate its channels and customer-facing processes–enabling a more seamless customer experience, higher customer satisfaction and more profitable growth. For more information, visit http://www-03.ibm.com/industries/telecom/us/detail/resource/J150376M04409F61.html Agora: Teamed with IBM to develop a new strategy and implementation roadmap for their Internet business based on market trend research, business model analysis and scenario envisioning. Two years after the project, Agora’s Internet offerings are outperforming the market and they have become a clear leader in the Polish Internet.

If we are to realize the enormous potential of a smarter planet, we have to reinvent the IT of the 21 st century in the same way that we industrialized our factory floors in the 20 th – making it more dynamic, less complex and less costly. Fortunately, smarter computing models are at hand. With “service oriented” software, companies can unlock business services from the underlying technology, so their software can be changed and reused flexibly – at a fraction of the cost of developing it from scratch. Virtualization can help companies reinvent their data centers, eliminating up to 70% of their servers and 80% of their floor space. Service management software can orchestrate all of these systems from one place, while letting IT users serve themselves, cutting administrative costs. Open IT infrastructures now being adopted by media and entertainment companies for production …. Information technology has taken us a long way in the past 50 years. But seizing the opportunities before us will depend on more then intelligent machines, it will depend on spreading intelligence across our technology infrastructures. Leveraging business intelligence and planning to improve insight into the business and elevate performance with better visibility and control of business processes and content.

Why must Media & Entertainment companies act now? Because the industry is experiencing deterioration in core revenues, pressures on cost models and challenges with digital. We coalesced around five: Cost Take-out: Areas of expected cost reductions and improved efficiency within M&E workflows and infrastructure Cross-channel Investment: Bifurcated supply chain management and growth for traditional and digital formats, channels Regulation and Security: Two-fold – Corporate compliance for Sarbanes-Oxley along with content security B2C and B2B Demand : Underpinning demand shifts affecting key services, products and M&E revenue streams M&A and Market Consolidation : Expected roll-ups, consolidation or M&A opportunities for key players in M&E due to reduced cash flow, available credit or uncertain viability Also, on this slide, we speak to new economic realities around suppressed advertiser, enterprise and consumer spending – and introduce the idea that these issues will affect our different customer groups in different ways