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Open Innovation in aglobalized world@ IBMÅbningskonference 17.06.2013Anders Quitzau, Innovation Executiveabout.me/andersqu...
2“Innovate or die- Collaborate and strive”“Innovate or die- Collaborate and strive”Anders Quitzau
31984 1992 2004 2005 2006
© 2013 IBM Corporation§ Highlights since 2000 …–  Added $10B in growth market revenue–  Tripled SW profits§  Exited comm...
© 2013 IBM CorporationBut we still sell ERP, PCs, printers, storage, network infrastructureetc.AlliancesEnterprise Applica...
6“Our path is innovation. We are an innovationcompany which relentlessly changes andkeeps moving to high value.Innovation ...
© 2013 IBM CorporationWhere does innovation come from?IBM Institute for Business Value, CEO Study7
© 2013 IBM CorporationWe Embrace Collaborative & Open Innovation§  Established an innovation agenda thatspans multiple di...
© 2013 IBM CorporationIBM s innovation portfolio reflects the tremendous creativity andcontributions of many organizations...
10“The World is ourLaboratory…”IBM Research
© 2013 IBM CorporationA successful Research Division…..§  Clearly defines its success goals§  Leads through partnerships...
© 2013 IBM Corporation12IBM Research: Collaborative Innovation - examples12ChinaWatsonAlmadenAustinTokyoHaifaZurichIndiaIB...
© 2013 IBM CorporationWe engage in public/private partnerships, like the EDISON andECOGRID projects on Bornholm§  Total b...
© 2013 IBM CorporationThe Smarter Energy Research Institute – a very cost-effectiveway of joint research and innovation14
15“Think in terms of buildingincremental value and creatinga bigger pie, not just gettingthe fattest slice”Steve Steinhilber
© 2013 IBM CorporationRevenueGrowthGoTo Market activitiesStrategic insightsIP AcquisitionsExpanded ecosystemsCredibility &...
© 2013 IBM CorporationOur experiences: Open and collaborative innovation§ Open innovation - give to get§ Open innovation...
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Open innovation in a globalized world @ IBM

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Key note given at Danish Foreign Ministry's conference for the inauguration of 3 new Innovation Center Denmark, locations in Sao Paulo, New Delhi and Seoul,

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Transcript of "Open innovation in a globalized world @ IBM"

  1. 1. Open Innovation in aglobalized world@ IBMÅbningskonference 17.06.2013Anders Quitzau, Innovation Executiveabout.me/andersquitzau© 2013 IBM Corporation1
  2. 2. 2“Innovate or die- Collaborate and strive”“Innovate or die- Collaborate and strive”Anders Quitzau
  3. 3. 31984 1992 2004 2005 2006
  4. 4. © 2013 IBM Corporation§ Highlights since 2000 …–  Added $10B in growth market revenue–  Tripled SW profits§  Exited commoditized businesses:– PCs– Hard disk drives– Printing Systems– Network§  Created a partner world of more than 100K partners:ISVs, VARs, resellers, developers, CSIs§  Strengthened position in:–  Business Consulting–  Service-Oriented Architecture–  Analytics & cloud computing–  Virtualization–  Open, modular systems§  Acquired 127 companies in last 12 years– to complement and scale our portfolio of products andofferings§  8th consecutive year of double-digit EPS growth§  Revenue of $99.9B – up 4%§  Record net income of $14.8B – up 10%§  Growth markets accounted for 21% of IBM’s totalgeographic revenue§  More than 6.300 US-patents– EPS nearly tripled to almost 15$ in 2011– $109B in Free Cash Flow– Returned $107B to shareholdersWe sold our – a.o. - our, ERP PC, printing and network, businessesRemixed our portfolio toward services,software, and integrated solutions…2011 another record year…4
  5. 5. © 2013 IBM CorporationBut we still sell ERP, PCs, printers, storage, network infrastructureetc.AlliancesEnterprise ApplicationsAlliancesIT InfrastructureAlliancesNetworkingAlliancesIT InfrastructureAlliancesSmarter Cities AlliancesIT InfrastructureAlliancesInfrastructureAlliancesMarket Development5
  6. 6. 6“Our path is innovation. We are an innovationcompany which relentlessly changes andkeeps moving to high value.Innovation shapes what we do, who we are asa company, and our strategy.“Ginni Rometty, IBM CEO
  7. 7. © 2013 IBM CorporationWhere does innovation come from?IBM Institute for Business Value, CEO Study7
  8. 8. © 2013 IBM CorporationWe Embrace Collaborative & Open Innovation§  Established an innovation agenda thatspans multiple dimensions:–  Product and technology–  Services–  Business process–  Business model–  Management and culture–  Policy and society§  Enabled global collaboration–  Culture of collaboration–  Innovation ecosystemWhy? What we’ve done§  Become our clients’ “innovation partner”–  Address client priorities–  Build deeper client relationships§  Respond to changing nature of innovation–  Opening up and collaboration§  Organizations need each other to besuccessful–  Pace of innovation outstrips an organization sability to go it alone§  Changing workforce dynamics–  Globalization–  Millennials”VentureCapitalists ISVs BusinessPartnersUniversities§  Technical§  BusinessCommunityLeadersCompetitorsEmployeesRegulatory BodiesInvestorsIT AnalystsAlumniStandardsBodiesPolicy-makersClientsInnovation Ecosystem“We opened up our labs, said to the world, ‘Hereare our crown jewels, have a look at them’. TheJam -- and programs like it – are greatlyaccelerating our ability to innovate inmeaningful ways for business and society.”- Sam Palmisano, IBM CEO 8
  9. 9. © 2013 IBM CorporationIBM s innovation portfolio reflects the tremendous creativity andcontributions of many organizations – both within and outsideIBMIBM-ledInnovationExternal-ledInnovationInvolvement ofExternal Partnersl  IBM Applied Research Projectsl  Emerging Business Opportunitiesl  TAP / BizTechl  Seed-stage Startupsl  First OfA Kindl  IBM IndustrySolutionsl  IBM BusinessPartner Solutionsl  IBM Research Servicesl  Ideasl  Product & Service Offeringsl  Idealabs, Jams“BleedingEdge”GenerallyAvailablel  University Programsl  Extreme Bluel  Startups / Entrepreneursl  VC Backed Firms(Late Stage)Maturity of Tech-nology/Solutionl  Academy of Technologyl  IBM Institute for Business Value – studies and PoVsl  IBM Basic Research Projectsl  IBM / Client Joint Innovationl  Acquisitionsl  AlphaWorksl  CIO-fund9
  10. 10. 10“The World is ourLaboratory…”IBM Research
  11. 11. © 2013 IBM CorporationA successful Research Division…..§  Clearly defines its success goals§  Leads through partnerships§  Leverages its global presence§  Couples with outside world§  Partners with its customers§  Is constructively self-critical§  Focuses on productivity§  Grows and develops theirresearchers and staff11
  12. 12. © 2013 IBM Corporation12IBM Research: Collaborative Innovation - examples12ChinaWatsonAlmadenAustinTokyoHaifaZurichIndiaIBM Research LabGlobal, Smarter Planet CollaborationsPangooSao PaoloMelbourneNairobiGOVERNMENT 2.0NATIONAL RESOURCES
  13. 13. © 2013 IBM CorporationWe engage in public/private partnerships, like the EDISON andECOGRID projects on Bornholm§  Total budget: 24 million Euro (EU funding 13 millionEuro)§  IBM: 171 man months, around 2.2M DKK of servers andother equipments, IBM SWG products (ILOG, WAS, MQ,DBMS)§  Demonstration > 50 % of budget (excl. replication/deployment)§  A large scale demonstration of a real-time market placefor distributed energy resources§  A demonstration of a real power system with more than50 percent renewable energy§  To implement ICT systems and innovative marketsolutions - offering TSOs additional and more efficientbalancing services§  To enhance small consumer and local producers toparticipate in the power market through real-timeoperation, energy storage and savings§  To make a prototype solution for Europe - offering a “fasttrack” option towards market-based Smart Grids inEurope13
  14. 14. © 2013 IBM CorporationThe Smarter Energy Research Institute – a very cost-effectiveway of joint research and innovation14
  15. 15. 15“Think in terms of buildingincremental value and creatinga bigger pie, not just gettingthe fattest slice”Steve Steinhilber
  16. 16. © 2013 IBM CorporationRevenueGrowthGoTo Market activitiesStrategic insightsIP AcquisitionsExpanded ecosystemsCredibility & visibilityInfrastructurePortfolioGapsaddressedExpertiseIBM’s Global Entrepreneurship Program – a win-winpartnership“Gets”“Gives”16Entrepreneurs andstart-ups“Gets” “Gives”
  17. 17. © 2013 IBM CorporationOur experiences: Open and collaborative innovation§ Open innovation - give to get§ Open innovation requires organizationalreadiness§ People and their relationships – make orbreak§ A structured approach to open innovation andpartnering helps!§ Show quick results in partnerships§ ‘Open’ versus IP protection and first-to-market. Deal with it§ Measure results, follow up and adjust“Every time my folksask me for astrategic alliance,they ask me to startloosing money”17
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