Business Optimization Through Information & Analytics - This presentation provides an overview of the information and analytics portfolio.

1. Business OptimizationThrough Information & Analytics <%savo.user.displayname%> - <%savo.user.title%> <%Date%>

2. Introductions

3. Our Smarter Planet and the Information Challenge Achieving Business Optimization Getting Started Today’s Topics Applying Information & Analytics In Your Organization

4. The world is changing and becoming more… Instrumented Interconnected Intelligent The resulting explosion of information creates a need for a new kind of intelligence … to help build a Smarter Planet

5. 1 in 3 Top Performers Demonstrate Expertise Business leaders frequently make decisionsbased on information they don’t trust, or don’t have 15X 1 in 2 Business leaders say they don’t have access to the information they needto do their jobs Predict and prepare for the futureby evaluating trade-offs proactively Industry Top performers Industry Under performers Many Organizations are Operating with Blind Spots;Those Applying Information & Analytics are Breaking Away Source: IBM: Break Away with Business Analytics and Optimization Study

6. The Key is Leveraging Information and AnalyticsInformed, Real-time Decisions at the Point of Impact… BreakawayApproach Predict and act Sense and respond Velocity Lack of Insight Real-time, fact-driven Instinct and intuition Inefficient Access Volume Everyone Skilled analytics experts Variety Back office Point of impact Inability to Predict Automated Optimized

7. The Result: Organizations Have the Insight to Act with Confidence. Mobile County Public Schools: Real-time analytics more effectively measures student performance and will immediately identify “at risk” students University of Ontario Institute of Technology: Early detection of potentially life-threatening conditions in premature infants Mobile Service Provider: Analysis of social relationships prevents customer churn and identify new products CenterPoint Energy: First-of-a-kind outage detection and self-healing within the grid of an intelligent utility network

9. Lowering Costs2X Client Investment in Business Analytics & Optimization Projects is Growing over Twice as Fast as Business Automation Information& Analytics Automation

10. Transforming Business Through Information and Analytics Reduction in storage space 50% Improvement in supply chain performance 50% Savings through modernization of core business applications $60M 50% Reduction in recall probability Reduction in loan processing cycle time 60% 30% Decrease in unplanned outage time

11. AcceleratingBusiness Optimization… An Industry Context & Technology Innovation to Accelerate the Journey

12. Establish end-to-end vision & business-driven value Accelerate projects for short & long-term ROI Create Value Align people, process & information LowerCosts Architect an extensible information infrastructure Information Agenda A proven, industry-specific approach for aligning information with business objectives

13. Information AgendaStrategy, Roadmaps, Information Agenda Guides Guides, Workshops, Accelerators, Roadmaps… Information Agenda Guide for Banking & Finance

14. Smarter Business Outcomes With Information Agenda Strategy, Roadmaps - Information Intensive Projects Raise maturity of information usage over time Connect the roadmap to a reference architecture Develop an adoption roadmap for the organization

15. Businesses Planning Their Information Agenda Rooms To Go: Increased sales by helping staff optimize floor planning based on customer buying habits; save $120k/yr through self-service reporting. Irish Life & Permanent: Improved cross-sales, created new services, improved customer satisfaction and reduced costs via MDM initiative. Portugal Telecom:Streamlined over 150 business processes, savings millions of Euros in IT cost while improving productivity. Kaiser Permanente: Developed enterprise-wide strategy for clinical data management, consolidating member data while ensuring control and security.

16. Analyze and use information at the point of industry-specific business impact Create Value Optimize processes, manage business performance, and anticipate opportunities and threats Create a single, trusted view of information across the organization managed over a strategic period LowerCosts Meet new throughput, scalability, reliability and data protection requirements while controlling costs. Accelerating Business Optimization

17. Analyze and use information at the point of industry-specific business impact Create Value Optimize processes, manage business performance, and anticipate opportunities and threats Create a single, trusted view of information across the organization managed over a strategic period LowerCosts Accelerating Business Optimization (continued)

18. Analyze and use information at the point of industry-specific business impact Create Value Optimize processes, manage business performance, and anticipate opportunities and threats LowerCosts Accelerating Business Optimization (continued)

19. Analyze and use information at the point of industry-specific business impact Create Value LowerCosts Accelerating Business Optimization (continued)

20. Create Value LowerCosts Accelerating Business Optimization (continued)

21. Create Value LowerCosts A Flexible Information Platform Expanding Technology $11B in Acquisitions Since 2006 Over 10,000 Technical Professionals Over 15,000 New Clients Over 2,300 New Partners

22. Building a Flexible Information Platform Bharti Airtel: Transformed infra-structure, reducing new account time for by 90% while enabling addition of 2.5-3M new subscribers a month. Coca-Cola Bottling: Replaced Oracle with IBM DB2, lowering costs and storage by 40% and manufacturing run duration by 65%. JB Hunt: New business process management system returns $1M annually through real-time visibility into business. Geisinger Health System: Integrating real-time clinical data with medical history to create a massive storehouse of intelligence.

23. Workload Optimized Systems and ServicesDesigned, integrated systems provide a foundation Integrated hardware and software solutions, optimized for specific workloads Smart Business Systems Information Archive Scale OutNAS Smart Analytics Systems CloudBurst System technology enhancements that hone capabilities for specific workloads System Optimizers IBM Smart Analytics Optimizer for DB2 for z/OS Power7 Accelerators General Purpose Platforms A choice of architectures – servers and storage – each fit for purpose Storage Virtualization Power7 System x DS8000 XIV System z

24. Taking it to the Next Level with Business Analytics Create Value LowerCosts

25. Delivering Insight and ROI Through Business Analytics US Lumber: 3,623% ROI through improved productivity, reduced inventory, accelerated accounts receivable turnover. Blue Mountain: 1,822% ROI by eliminating excess inventory, improved reporting, more strategic pricing decisions. Martin’s Point Health Care: 1,185% ROI through BI competency center that reduced reporting demands and improved user productivity. Swedbank: Reduced loan processing time from 6 days to 20 minutes by automating decisions using predictive analytics.

26. Taking it to the Next Level: Predictive Analytics Richmond County Police pinpoints hotspots & leads to 20-30% decease in violent crimes Center for Disease Control Characterizes disease & quickly assess medical needs in real-time Cablecom GmbH Doubled ability to predict churn & reduced actual churn 10 fold Infinity Property & Casualty Corporation Real-time claims scoring starts fraud investigations within 24hrs. vs. 2 weeks

27. Taking it to the Next Level: Content Analytics Large Claims 3rd Party Administrator Content Analytics over claims detects fraud faster, reducing costs by millions University of Ontario Institute of Technology detects life-threatening conditions in infants up to 24 hrs earlier NTT DoCoMo Content Analytics over “Voice of Customer” data creates insight driving customer-oriented decisions Kraft Content Analytics over online customer postings helps target & deliver new campaigns, increasing sales & loyalty

28. Create Value LowerCosts Taking it to the Next Level – Packaged Analytics Packaged Business Intelligence for Line of Business … Ready-made reporting and analysis that consistently measure performance departmentally and across the enterprise

31. Optim Data Redaction

32. Global Business Services Information Governance Assessment and Implementation ServicesGA in March These offerings are part of an ongoing investment in information governance.

33. Taking it to the Next Level: Industry by Industry

34. Taking it to the Next Level: With Experts from IBM… BAO Strategy BI & Performance Management Advanced Analytics & Optimization Enterprise Information Management Business Know-How Strategy & Change, 5,000 Dedicated Consultants Enterprise Content Management

36. Cubing Services

38. Advanced Workload Management

40. Storage Capacity

41. Build, Deploy, Health Check & Premium Support ServicesPre-optimized Business Intelligence Software triples out of the box performance* * Based on IBM Laboratory Tests. Actual results may vary depending on specific environment and configuration. Putting it All Together…IBM Smart Analytics System

42. We’ve Only Just Begun to Uncover What is Possible on a Smarter Planet. With the information organizations already have and new analytical tools, there are no limits to what is possible M&A Agility… Withholding Tax Optimization Real-time Risk Analysis Real-time Trading Positions How can you use information and analytics to transform your organization?

43. IBM is Investing to Accelerate Business Optimization Over $11B in acquisitions since 2006 Over 10,000 technical professionals Over 5,000Dedicated Consultants Largest Math Department in Private Industry Over 2,300 new Business Partners since 2006 “Since 2006, IBM has deliberately & doggedly constructed an unparalleled portfolio… it's difficult to see how any competitors will be able to compete anytime soon…”

45. How can I manage my information as a trusted, strategic asset?

46. How can I deliver the insight neededfor informed decisions and actions?

47. Take the Information and Analytics Self Assessment

48. Contact your IBM RepresentativeLearn more: ibm.com/new-intelligence

49. Smarter planet: Thinking and acting in new ways to make our systems more efficient, productive and responsive. People and Process Transformation Information & Analytics Next-generation Datacenter Product and Service Innovation Security and Resiliency Sustainability Smart Industries & Cities

50. Innovation That Matters$11B USD in Acquisitions Over 10,000 Technical Professionals 2010 Social Analytics/Consumer Insight Smart Analytics Systems Advanced Case Management Content Analytics Stream Computing Pervasive Content pureScale pureXML Deep Compression Developer Productivity Autonomic Operations 2006

51. Chicago-based insurance firm provided managers with consistent reporting and analysis to assess employees’ performance Faster Insight: Smarter Decisions with Packaged Analytics Large agri-business companyconsolidated transactional financial data into standard, reliable management reporting Oil & Gas international company projected $2-$5M in savings with consolidated analysis of spend Manufacturerpinpointed sales territory that was discounting too heavily and impacting revenue

52. We are Producing an Explosion of Information… Volume 988 exabytes: The amount of digital information that will exist in 2010, equal to a stack of books from the sun to Pluto and back… Variety 80% of new data growth is generated largely by email, with increasing contribution by documents, images, and video and audio. Velocity77% of executives say they do not have real-time information to make key business decisions. Source: Various IBM and Public Studies

53. …While Forward-Thinking Organizations Distance Themselves From Their Competitors Key Advantages High quality information Winning Characteristics 32.5% 25% 22.7% 21.9X Strong decision support 5.6X 15X 4.4% 1.5% 1.5% Keen focus on driving business change Empowered Anticipating Challenging Enable and empower employees to analyze, decide and act Predict and prepare for the future by evaluating trade-offs proactively Disrupt the status quo to improve the business and create new opportunities Chart shows differences at the highest achievement levels Key: Top performers (i.e., 1st quintile relative to industry peers) Lower performers (i.e., 4th and 5th quintile relative to industry peers) Relative difference of top performers to lower performers Source: Breaking Away with Business Analytics and Optimization: New intelligence meets enterprise operations at www.ibm.com/gbs/intelligent-enterprise.

54. Imagine if you could… …apply social relationships of customers to prevent churn? …predict infection in premature newborns 24 hours earlier? …determine who to offer discounts at time of sale instead of offering to all? …adjust credit lines as transactions are occurring to account for risk fluctuations? Telco Call Center Rep Retail Sales Associate Physician Loan Officer

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67. Provides single-source financing that helps clients acquire business services and technology services, hardware and software ― IBM and non-IBM

68. Flexible financing with competitive rates to businesses of all sizes and across all industries

70. Software

73. Self-funding project based on anticipated benefits

75. Aligns payments with anticipated benefits

76. Speeds project approval, and preserves cash flow and credit lines

77. Develops a tailored funding solution through our comprehensive financing facility for:

78. All project elements and phases

80. Leverage your project budget and help simplify solution acquisition with IBM single-source software financing. IBM Global Financing software financing offers you: 100 percent “soft” financing No hardware is required, unlike with many other vendors. Customized payment options designed to provide value Develop the IT solutions you need today, with more budget buying power. Match your software costs to benefits. Preserve cash for other strategic investments. Simplified software solution acquisition with single-source financing Learn more at:www.ibm.com/financing

82. Facilitate environmentally friendly disposal for non-marketable assets

83. Can help provide protection of confidential data stored on hard drives through our Disk Overwrite services

84. Complete logistical services including packing and transportation

86. With Channel financing, you get relief from the cash crunch and an overall expansion of business credit, potentially yielding significantly greater volumes and profits.

87. Receivables Financing—Open up cash flow by borrowing against availablecollateral such as accounts receivable and inventory. Choose the offering that best suits your company’s needs and financial strategy:

88. Revolving Lines of Credit - Asset-based loans that use accounts receivable and inventory to secure cash advances to meet your working capital needs

89. Receivables Purchase - Get immediate cash from IBM Global Financing by selling your receivables from pre-qualified clients

90. Large Sale Receivables Financing - Obtain bridge funding to help you accommodate larger orders-for up to 100 percent of the order purchase amount and with no interest charges for up to 30 days. Structure your repayment terms to match your collection of the receivables `Learn more at:ibm.com/financing/us/comfin GFP03051-USEN-00

91. IBM Certified Pre-owned Equipment is the cost-effective alternative to new when matching, upgrading or adding to your present IT portfolio Fully refurbished and tested to IBM standards IBM maintenance qualified Current and prior-level technology solutions at a fraction of the original price Selected models include 1 or 3 years’ maintenance 90-day satisfaction guarantee with IBM maintenance contract (system may be replaced or refunded at IBM’s discretion if equipment is unsatisfactory) Availability of selected IBM Pre-owned Equipment which is provided with the same warranty as new equipment and is priced slightly higher than IBM Certified Pre-owned Equipment Acquisition: Less stringent credit requirements for purchase or financing of IBM Certified Pre-owned Equipment Short-term rentals are available for IBM Certified Pre-owned Equipment Wide range of equipment available off the shelf or custom-configured, including: Intel®-based servers: Netfinity®, xSeries® and System xTM Midrange servers: AS/400®, iSeries® and System iTM UNIX® servers: RS/6000®, pSeries® and System pTM Mainframe systems: S/390®, zSeries® and System zTM Storage: disk and tape systems Printers and networking hardware

92. Vendor Financing - Overview IBM Global Financing has been expanding its reach by developing key alliances with several vendors These alliances provide the vendors with an array of financing options that they can then extend to their customers and partners This gives customers more funding options, and allows them to turn large up-front costs into an affordable and predictable monthly payment IBM Global Financing has signed agreements with the following vendors: APC-MGE Motorola Enterprise Mobility (previously Symbol Technologies) Lenovo Juniper Networks InfoPrint Solutions Company

93. Vendor Financing

95. Ability to review options and make end of lease decisions

96. Ability to request and track progress of transportation requestLearn more at:ibm.com/financing/us/hardware/tools GFP03031-USEN-00

98. We can help clients:

99. Reduce total cost of ownership of new IBM hardware by leasing vs. purchasing

100. Establish a technology refresh cycle that can ensure price/performance optimization while helping to manage operational costs and eliminating technology obsolescence

101. Finance services and/or software projects in any of the five elements

102. Match cost to benefits (improved ROI payback) by consolidating complex, multivendor virtualization or other green projects with large up-front costs into a single monthly payment

103. Dispose of retired IT equipment in a safe and secure way and in compliance with environmental laws and regulations

104. Reuse equipment by offering used when new is not an optionGFP03032-USEN-00

106. By providing a holistic view, we can provide a single financing solution to cover the entire scope of an IT project, including hardware, software and services from IBM and other vendors.

107. Our leases lower the total cost of IT ownershipand allow clients to upgrade technology within the lifecycle of their leases.

108. Among our offerings:

109. Financing of hardware, software and services from IBM and other vendors, migration and upgrades

110. IBM Project Financing (all-inclusive financial package for services, infrastructure solutions and business transformation projects)GFP03033-USEN-00

112. This equated to over 19.4 thousand machines (or 536,180 pounds) per week.

113. 90.33% of the returned machines were from end of lease, and 9.77% were ARS-related.

115. The weight of returned machines is now over 109.5 thousand metric tons (or over 241 million pounds).Since 2004, GARS remanufacturing centers have processed over 1.5 million laptops. If these laptops were stacked on top of each other, the pile would extend over 31 miles into the atmosphere (a trans-oceanic jetliner flies approximately 7 miles high by comparison). GFP03020-USEN-00

117. You can return the equipment at end of lease

119. For clients with longer term use expectations and requirement to pay over timeGFP03035-USEN-00

123. Minimized obsolescence risk

124. Upgrade for little or no change in monthly payment

125. Optimize price performance improvements

126. Obtain latest power, cooling and space advances

127. Minimize data disposal risks

128. Minimize environmental risks

129. Minimize disposal costsGFP03036-USEN-00

131. System z and mid-range/high-end Power servers.

132. clients who currently own or lease their IBM equipmentKey client benefits Affordable, side-by-side non-disruptive migration. Minimized termination charges on leased base equipment with early replacements. Full 12-month warranty. Offers current system’s fair market value to an Power™ Exchange server or System z® hybrid. In some cases, the current server may be purchased from the client. Client can use both servers for up to 60 days to perform side-by-side installation and testing.

134. Nearly two times the IT financing volume of #2 Dell Financial Services and three times the volume of #3 HP Financial Services

135. Focuses primarily on solution and technology financing

136. Provides single-source financing to help clients acquire business and technology services, hardware and software – IBM and non-IBM

137. Flexible financing with competitive rates to businesses of all sizes and across all industries

138. Proven partner across the lifecycle of IT investments, from acquisition through disposition

139. IBM Global Financing processes about 40,000 returned machines, or 1.8 million pounds, per week across the world and recycles 85% of the assets

140. Competitive low rates with flexible terms and friendly contract terms and conditions

141. affordable, fixed-rate financing with no restrictive covenants

142. Total solution financing of IBM and non-IBM hardware, software and services

143. one financing provider, one contract, one monthly payment and IT expertise to manage your ongoing project costs

144. Customized financing structures to meet any budget or project ROI requirement

145. innovative deferrals and step structures that can help you mitigate up-front costs

146. Asset buyback and disposal capabilities to simplify the migration process and potentially provide you value on your older equipment

147. Eliminates compliance risk by leveraging IBM expertise in applicable local and state environmental disposal regulations

148. IBM can buy back remarketable equipment which can help you reduce migration costsLearn more at:ibm.com/financing/us/migration/overview.html GFP03039-USEN-00

151. Return on Assets (ROA) is improved by reducing the value of book assets

152. Debt Ratio (Total Debt/Total Assets) is improved by reducing the value of book assets and also by potentially paying off debt with the cash infusion

153. Reduces IT expenses over the long term: A 20% reduction in IT operations cost increases new applications development budgets by 80%, according to Gartner

154. Help to reduce depreciation expense along with the value of book assets

155. Protect against shorter technological life than originally anticipated

156. Establish a regular technology refresh cycle through leasing

160. Extend base lease with upgrade for 36 monthsLeasing upgrades leverage your initial IBM investment, eliminate obsolescence risk and drive lower total cost of ownership Financing can help establish a flexible technology refresh cycle, ensuring that capacity needs are met while controlling costs At mid-lease, the refinancing of the remaining obligation over a new term can lower the payment and create budget room for a new payment for the upgrade For clients starting or enhancing their green strategy, leasing upgrades ensure that they obtain the latest IBM advances in power, cooling and space advances at an affordable cost, and IBM assumes responsibility for environmentally compliant asset disposal at end of lease GFP03044-USEN-00

161. Mid-lease upgrade example: Significant price performance improvement with little or no impact to existing budget 4.2 and 5.0GHz options POWER6™ 595 can provide up to 80% more rPerf performance than POWER5™ 590/595 servers New monthly payment is 5% lower than original lease payment $46,314/month* Original Asset Value $44,133/month* $2,000,000 New Server Lease Principal Value $1,500,000 Technology Upgrade Remaining Principal Estimated monthly payments ($) POWER6 595 32W POWER5+™ 32W $1,000,000 New ServerUpgrade $500,000 Initial 36-month Lease New Base Lease 36 months $0 12 24 36 48 POWER6Upgrade POWER5+ Base and POWER6 Upgrade POWER5+ 595 at 20 months POWER5+ 595 Lease Term (months) Improve performance by 80%, reduce monthly payment by 5% GFP03045-USEN-00 * For illustration purposes; represents a 32-way POWER6 595 standard server; best credit client: FMV 36-month lease. Actual financing rates based on client’s credit rating, financing terms, offering type, equipment type and options. Other restrictions may apply.

163. With 29 years of experience, IBM Global Financing is the world’s largest IT financier, with total assets of $34.6 billion and 125,000 customers in 55 countries. Clients range from small businesses to more than 80% of the Fortune Global 100 list of companies and nearly 90% of Fortune 500 Most Admired companies.

164. In 2009, IBM Global Financing represented about 2.4% of IBM’s external segment revenue and 8.9% of IBM’s external segment pre-tax profit

165. Achieving higher value for our clients

166. As organizations plan on how to reap the benefits of a rebound, IBM Global Financing will play a key role in helping companies finance critical projects.

167. As IT spending shifts to software and services, the need for financing these areas is increasing. IBM Global Financing Project Financing offering provides longer payback terms and graduated payments to allow clients to align payments with anticipated benefit streams.

168. Rankings and accomplishments

169. In December of 2009, IBM Global Financing was awarded the "Captive Finance Provider of the Year" by Leasing Life Magazine.

171. Preserve cash flow and revolving credit lines,

172. Match cash outlays with anticipated benefits

173. May enable some projects to be viewed as “self-funding”

174. Vendors paid timely after milestone approvals

177. End of lease options

179. Mitigate technology obsolescence risk

180. Improve financial measurements

181. Payment and term flexibility…optimize total cost of ownership throughout the entire technology lifecycle GFP03049-USEN-00

182. Leasing helps… The equipment is owned by IBM Global Financing – leasing offers ability to expense rather than capitalize and depreciate system payments Leasing helps clients… …avoid issues related to depreciation Leasing helps clients… …avoid issues related to disposition of owned assets Disposition of assets incur cost in time, resources and even cash – at the end of a lease the equipment is simply returned Leasing helps clients… …lay out less cash compared to a purchase Simplifies asset management with better tracking and a more homogeneous portfolio Laying out less cash means funds (or credit lines) are available for other strategic initiatives Leasing helps clients… …avoid costs associated with technology obsolescence Technology obsolescence has implications on price performance, maintenance/support costs, energy efficiency and productivity GFP03050-USEN-00

184. Improves price-performance and offers interest-rate protection

185. Enhances reliability, scalability and flexibility of the IT environment

186. Streamlines the entire IT infrastructure life cycle, including planning, procurement, budgeting and payment, and asset dispositionGFP03052-USEN-00