Collaborative innovation in IBM

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Overview of major innovation processes in IBM.

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Collaborative innovation in IBM

  1. 1. Collaborative Innovation in IBM - Anders Quitzau, innovation Executive 1© 2011 IBM Corporation
  2. 2. IBM Research 2
  3. 3. Collaborative InnovationAnders Quitzau, Innovation Executive, IBM DanmarkHD(R), Cand.Merc.Aud.Peat Marwick Mitchell & Co, KPMG, Schøbel & Marholt ManagementKonsulenter, Deloitte Consulting1997 – 2000 Manager, IBM Oracle Services – EMEA2001 – 2002 Business Development Manager – IBM NetGen2002 – 2003 IBM e-business services – offering manager2003 – 2007 Business Development Executive Emerging Business Opportunities –Mobile, FTTH, Sensors & Actuators2007 - Innovation Executive and chief technologistLeader of IBM Global Innovation Community 3 © 2011 IBM Corporation
  4. 4. Collaborative Innovation What is innovation? 4 © 2011 IBM Corporation
  5. 5. Collaborative Innovation Why Innovate? 5 © 2011 IBM Corporation
  6. 6. Collaborative InnovationIBM’s early days.... 6 © 2011 IBM Corporation
  7. 7. Collaborative InnovationSome IBM inventions..... 7 © 2011 IBM Corporation
  8. 8. Collaborative InnovationIBM want to be a relevant company in building a Smarter Planet Smarter traffic Smarter power Smarter money Help cut traffic jams, reduce Change energy consumption patterns, Build a safer, more transparent and emissions, increase use of public manage loads better, preserve our intelligent financial system . transport. environment. Smarter food Safer citizens Smarter cities Improve the quality and reduce Analyse crime patterns and Address congestion, pollution, the cost and environmental CCTV and improve emergency health, safety, sustainability, impact of what we eat. response and border controls energy use and water management. Smart shopping Smarter oil Smarter water Use intelligence to eliminate As we move toward a renewable Monitor, measure and inefficiency and waste and better future, shape our hydrocarbon present analyze water ecosystems, and serve the empowered consumer to be more efficient, affordable and provide a single, reliable, up-to- protective of the environment the minute and actionable view of water use. Smarter Smarter healthcare communications Improve research, diagnosis and treatment of serious illnesses. Build smart networks which can identify instrumented things and collect relevant data from them. © 2011 IBM Corporation
  9. 9. Collaborative Innovation Innovate what? 9 © 2011 IBM Corporation
  10. 10. Collaborative InnovationIBM’s definition of innovation § Intersection of invention and insight § Creates value § Holistic view “Innovation is a societal -- not a – Business model technological -- phenomenon, Sam Palmisano, CEO, IBM Corporation – Products & services – Operations © 2011 IBM Corporation
  11. 11. Collaborative Innovation IBM has in a relatively short period re-innovated ourselves Business Model, Operating Model and Workforce Transformation Remixed our portfolio toward services, Shift in geographic mix… software, and integrated solutions… § 2008 revenue: § Exited commoditized businesses: – 21% Asia Pacific – PCs – 37% Europe, Middle East, Africa – Hard disk drives – 42% Americas – Printing Systems § Strengthened position in: § 71% of employees outside US – Business Consulting – 84K in India, 60K increase in 5 years – Service-Oriented Architecture – 16K in China, 10K increase in 5 years – Information on demand – Virtualization – Open, modular systems § Acquired over 100 companies in last 10 years § Record Performance in 2008... – to complement and scale our portfolio of products and – $103.6B revenue, up 5% (2010: 99.9 BUSD) offerings – $16.7B pre-tax earnings, up 15% (2010: 14.8 BUSD) 20 $ 10 $ Pre Tax Income & Free Cash Flow ($B) Revenue ($B) 15 $ 39% Pre-tax income EPS EPS Free Cash Flow 34% 16% 41% 44% 6$ 21% 2003 2010 9$ Segment Segment Software 49% Profit Mix Profit Mix 57% 3 Services 4$ 2$ 21% 2000 2001 2002 2003 2004 2005 2006 2007 2008 35% 25% 17% Hardware & Financing – $8.93 Earnings Per Share, up 24% (2010: 11.52) – Strong performance in services, software and growth markets © 2011 IBM Corporation
  12. 12. Collaborative Innovation Where do ideas come from? 12 © 2011 IBM Corporation
  13. 13. Collaborative Innovation Sources of innovation.... Internal & External Sources for New Idea Generation Customers directly 38 % Employees (general population) 35 % Consultants 27 % Internal sales and service units 25 % Business partners 23 % Associations, trade groups, conf boards 19 % Competitors 17 % Other 6% Think-tanks 6% Academia 6% Internal R and D 4% Internal Sources Media, Publications 2% External Sources Internet 2% Citizens 2% Labs/Other Govt institutions 0% Source: The Global CEO Survey 2006 © 2011 IBM Corporation 14 IBM InnovationIBM & Bankdata Confidential
  14. 14. Collaborative InnovationAt IBM, ideas are generated from multiple sources within andoutside … Ideation Sources Market Institute for Intelligence Business Value Business Unit ThinkPlace Strategies Global Technology Emerging Business Idea Outlook Opportunity Program First-of-a-Kind New Technologies Program Venture program On Demand University Transformation Strategy Programs Global Innovation Outlook © 2011 IBM Corporation
  15. 15. Collaborative InnovationWe work with venture companies to build our innovation eco-system- and to sense what is going on ‘ 15 © 2011 IBM Corporation
  16. 16. Collaborative Innovation Innovation is about people – Getting ideas on the table – and implementing the best © 2011 IBM Corporation
  17. 17. Collaborative InnovationOur philosophy of innovation is: Fail many, but fail cheap- A new paradigme in innovation enabled by Web 2.0: Yesterday – as was 1 Today – As is § Ideation and Product Inception from the Ideas source: expanding source for Ideas source: Internal innovation Internal, partners and customers idea idea idea idea idea § Use Collaborative idea ideaidea ideaidea idea idea tools to solicit idea idea idea idea interactive feedback. Weeks to months idea 18 months to 2 years § Limited community to foster new innovation Service Service Service § Little user interaction and market feedback § “Build it and Service § Service silos § Limited reuse they will 3 2 § Use of exposed come” § Larger variety of approach compelling offerings common capabilities to offer customers to enable rapid service assembly Breadth © 2011 IBM Corporation
  18. 18. Collaborative InnovationIdea management models 18 © 2011 IBM Corporation
  19. 19. IBM’s innovation management processCollaborative Innovation § Corporate R&D Ideation § Innovation Hubs § Jam Customers § Patent Portfolio § Collaboration Tools § CEO Study Universities § IBM Divisions § InnovationJam § GIO / GTO Partners § Market Intelligence § “Deep Dive” issue reviews Validation § Innovation TAP Discovery BizTech § Patent Matching Extreme Blue Development § ODIS alphaworks § Open Source FOAK § Beta EBO Program Launch New Market New Offerings New Technologies Create and develop new functional Develop new and integrate existing Innovations that disrupt markets with new products and products and services to create or redefine markets services new value propositions 10 © 2011 IBM Corporation Smart Innovation
  20. 20. Collaborative InnovationThe IBM Institute for Business Value creates fact based industry and businesslevel thought leadership and tools that help IBM and clients realize business value Our Objectives Our Focus Our Research Types Our Deliverables § Content: Create § Distribution § Future Agendas § Executive Briefs extraordinary, fact based business insights § Financial Services § 3 to 10 year industry § Quick Read (Executive § Market Impact: Differentiate § Industrial and/or functional area Summary) IBM in the marketplace § Public outlook with action § Event and Conference § Value Creation: Value-based oriented next steps Presentations approach to identify and § Strategy & Change deliver client results Innovation § Value Realization Studies § Blue Paper (What and § § People Growth: Attract, CRM § In-depth assessment of How to Sell) retain and motivate top GBS § today’s critical issues, § Knowledge e-cards talent § Human Capital opportunities, and value § Pod/Webcasts § Supply Chain potential Financial Management § Books § § CXO Surveys Application Innovation § By-lines and articles § § Chief officer studies § Emerging Markets 20 © 2011 IBM Corporation
  21. 21. IBM Danmark – Working for a Smarter Planet AndersQuitzau, Innovationschef INTELLIGENTE FØDEVARESYSTEMER IBM og Superbest er ved at afprøve en mere intelligent løsning til at sikre kvalitet og friskhed af kød i butikkerne - og reducere madspild! … løsningen anvender bl.a. RFID-teknik til at spore og følge kød via leverancekæden fra gården og ud i kølemontren.21 01.03.2011 © 2012 IBM Corporation
  22. 22. Collaborative InnovationInnovation as a core discipline at IBM Mobilize Interest, Incubate, Create Mobilize Interest, Implement, Collaborate Prototype and Idea Collaborate Take to Market Validate INSIDE IBM Lines of Business Internal Stakeholders Global Technology Outlook Clients FOAK OUTSIDE Sametime 3D Partners IBV reports © 2011 IBM Corporation
  23. 23. IBM ResearchIBM Research: Collaborative Innovation China Pangoo Zurich Tokyo Almaden Watson Haifa Austin India IBM Research Lab Global, Smarter Planet Collaborations23
  24. 24. Collaborative Innovation IBM er en af de væsentligste deltagere i ECOGRID - EU’s største satsning på Smart Grid. 24 © 2011 IBM Corporation
  25. 25. Collaborative Innovation Container Centralen, using advanced secure RFID tags to solve a business problem and provide opportunity for new services Started in 1976, the CC system was created due to demand for a Based on an exchange solution to transport system, leading to 80.000 users across 22 increased efficiency and flowers and plants countries in Europe, e.g. lower number of growers, auctions, containers needed transporters, exporters, retailers © 2011 IBM Corporation
  26. 26. IBM Research26
  27. 27. Collaborative InnovationLinks: IBM Innovation: http://www.ibm.com/innovation IBM Research: http://www.research.ibm.com/ Institute for Business Value: http://www-935.ibm.com/services/us/gbs/ bus/html/bcs_whatwethink.html IBM Global Innovation Outlook: http://domino.research.ibm.com/comm/ www_innovate.nsf/pages/world.gio.html# IBM Jams: https://www.collaborationjam.com/ Alphaworks: http://www.alphaworks.ibm.com/ © 2011 IBM Corporation
  28. 28. Collaborative Innovation Spørgsmål? 28 © 2011 IBM Corporation
  29. 29. IBM Research29
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