Tom
Hawk
IBM General Manager
Global Industrial Sector

Innovation Today
How software helps companies
embrace change, deliver smarter
products and drive profit

For industrial companies, reducing costs is a top priority,
but innovation and efficient operations remain critical.
Top Priority
Realize
Accelerate Reduce Efficient
Innovation Costs Operations

Innovation is about taking deep insight to create new
value – for business and society.
Innovation resides at the
intersection of invention and
insight, leading to the creation
of social and economic value.
National Innovation Initiative

We are on the verge of a new wave of innovation...
IT
Smarter
Innovation
and
Oil, Cars Telecom Products
and Mass
Steel, Electricity Production Instrumented,
and Heavy interconnected,
Steam Engineering and intelligent
And
The Railways Building blocks
Industrial for a smarter planet
Revolution
1770 1830 1875 1920 1970 2010

…where embedded software becomes even more crucial
for product innovation and differentiation.
Electronics Automotive Aerospace and Defense
Apple’s iPhone is completely 90% of innovation is based F-22 Raptor (2003) contains
instrumented, with GPS positioning on electric and electronic systems 1.7 million lines of code
software that helps the device 80% of this innovation F-35 Lightning II will have
know where you are is based on embedded software 5.7 million lines of code
Key benefits
Create new opportunities Enhance customer loyalty
Increase revenue / profit Faster time-to-market

Industrial products are getting smarter and more
complex every year. smarter
medical equipment
smarter
smarter
electronic
automobiles
devices
smarter smarter
trains aircraft
smarter energy

For example, automotive companies are leveraging software
to help reduce fuel consumption and emissions...
What’s smart?
Innovative hydraulic hybrid technology
for urban delivery trucks
Smart software to optimize energy usage
and reduce greenhouse gases
Smarter business outcomes
60-70% increase in fuel economy (per EPA) Software tools are needed to:
Model and optimize system performance
40% reduction in CO2 emissions
Automatically generate in-vehicle
software code

… and are interconnecting products through advanced
technologies and solutions.
What’s smart?
Smart end-to-end system optimizing
vehicle usage and routing
Innovative technology for advanced
telematic solutions
Smarter business outcomes
5-10% reduction in fuel consumption Software tools are needed to:
due to optimized vehicle management Improve collaboration in the product
portfolio planning process
10% reduction in telecommunications Automate release planning balancing
costs due to increased automation cost, risk and reward

These smarter products will play a major role for enabling
tomorrow’s ecosystems, such as for smarter transportation.
Government
Enterprises
Authorities INSTRUMENTED
Transportation
Consumers Geographies
System
INTERCONNECTED
Smarter
Energy & Utilities
Products
Communities INTELLIGENT

IBM continues to invest in industry assets and frameworks to
help develop and deploy smarter products.
Industry Solutions
IBM Industrial Sector
Composite Business Services
ISV Services
Industry Frameworks
Process Models
Data Models PDIF Product Development
Industry Frameworks Integration Framework
Open, Industry Standards
MIF Manufacturing
Business Business Integration Framework
Integration Optimization
IT
Operations IIF Integrated Information
SOA Foundation Framework

...with a core foundation of software delivery offerings
that enable smarter products.
Rational DOORS
The Rational Software Platform for Systems Rational Rhapsody
Rational Focal Point
Rational System Architect
Rational Team Webtop
Rational Team Concert
Rational Synergy / Change
Rational CC / CQ
Rational Quality Manager
Rational Build Forge
Rational Harmony
Rational MCIF for Systems
+

We’ve only just begun to uncover what is possible on a
smarter planet.
The world will continue to become
smaller, flatter, and smarter.
We are moving into the age of
the globally integrated and intelligent
economy, society, and planet.
Let’s Work Together to Drive REAL World Progress