Presentation given by Matthias Kaiserswerth, Director, IBM Research - Zurich Laboratory, Aachen, Germany. June 18, 2009

1. Zurich Research Lab
Open innovation from an IBM Research Perspective
Dr. Matthias Kaiserswerth
Director, IBM Zurich Research Lab
© 2009 IBM Corporation

2. Building a smarter planet
Agenda
 IBM Research and Zurich Research Lab
 Collaborative Innovation at IBM
 Open collaboration
 Jamming
 Next steps
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© 2009 IBM Corporation

3. Building a smarter planet
Agenda
 IBM Research and Zurich Research Lab
 Collaborative Innovation at IBM
 Open collaboration: What does it look like?
 Jamming
 Next steps
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© 2009 IBM Corporation

4. Building a smarter planet
IBM Labs are Globally Integrated
More than 3,000 scientists and engineers at 8 labs in 6 countries
IBM spent $6B in 2008 on R&D
Watson Zurich
1945 1956 Beijing
1995
Almaden Tokyo
1955 1982
Austin Haifa Delhi
1995 1972 1998
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© 2009 IBM Corporation

5. IBM Zurich Research Lab
- 350 Persons including
employees, pre-docs and
post-docs and visiting
scientists
- 30 different nationalities
- 90 Collaborative projects
with universities, industrial
partners and governments
- Two Nobel Prizes
(1986 and 1987)
- New Nanotech Center to
open in 2011
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© 2009 IBM Corporation

6. Building a smarter planet
Agenda
 IBM Research and Zurich Research Lab
 Collaborative Innovation at IBM
 Open collaboration: What does it look like?
 Jamming
 Next steps
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© 2009 IBM Corporation

7. Building a smarter planet Zurich Research Lab
What is innovation?
“Innovation resides at the intersection
of invention and insight, leading to
the creation of social and economic
value”
National Innovation Initiative
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© 2009 IBM Corporation

8. Building a smarter planet Zurich Research Lab
The changing nature of innovation
 Key factors driving change
– Dynamics of a flattening world
– Emergence of new capabilities
– Evolution of information technology
– March of commoditization
– Massive shift in demographics
– Unpredictability and impact of change
 Innovation in the 21st century
– Open
– Collaborative
– Multi-disciplinary
– Global
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© 2009 IBM Corporation

9. Building a smarter planet Zurich Research Lab
Why does innovation matter?
 Generates high-value,
higher-paying jobs
 Fuels wealth creation
and profitability
 Creates new industries
and markets
 Spurs productivity and
economic growth
 Raises standard of living
 Goes beyond invention
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© 2009 IBM Corporation

10. Building a smarter planet Zurich Research Lab
Open Collaboration
CLIENTS
EMPLOYEES CONSUMERS
INVESTORS LOCAL
INNOVATION COMMUNITY
ECOSYSTEM
ACADEMIC
COMMUNITY PARTNERS
SOCIAL
GOVERNMENT
MEDIA
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© 2009 IBM Corporation

11. Building a smarter planet Zurich Research Lab
Collaborative Innovation
China Pangoo
Zurich
Almaden Haifa Tokyo
Watson
Austin India
IBM Research Lab
IBM Research Collaboration
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© 2009 IBM Corporation

12. Building a smarter planet Zurich Research Lab
Evolution of a Partnership
IBM Research’s Public-Private Partnership with ETH
IBM and ETH Zurich Information IBM and ETH Zurich
open Center for Security Center form $90 million
Advanced Silicon created with ETH partnership in
Electronics and Credit Suisse nanoscience
September 2003
August 2001
June 2008
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© 2009 IBM Corporation

13. Building a smarter planet Zurich Research Lab
Multi-Million Dollar Investment in Nanotechnology
 IBM constructs the building
 ETH Zurich rents for a
minimum of 10 years
 10,000 ft2 Clean room
facilities
 Noise-free rooms
 $30 million in new equipment
 Both joint and independent
research projects
 Scheduled to open in 2011
© 2009 IBM Corporation
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14. Building a smarter planet Zurich Research Lab
Innovative Collaboration
Varioprint AG and IntexyS Photonics
What’s innovative?
• Intexys Photonics and
Varioprint AG Partnered
with the IBM Zurich
Research to develop a cost
competitive, optical data
transmission solution to
increase the bandwidth
between processor chips.
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15. Building a smarter planet Zurich Research Lab
Disruptive and Radical Innovation
Bandwidth Density of Objects
All Electrical All Optical
 Today, optical interconnects are used
for long-distance intra-cluster
connections due to high bandwidth
(BW) capabilities
 As BW requirements increase, optics
will be able to provide a cost- IBM Federation Switch
performance advantage for even copper and optical interconnect
shorter distances, for backplane and versions
card level interconnects
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© 2009 IBM Corporation

16. Building a smarter planet Zurich Research Lab
Optical Interconnect: A Supplier Ecosystem
Optical printer circuit board
Multinational
Partner
Optical connectors
Multinational
Partner
+
European
Startup
16 Opto-electronic transceivers
Card-to-card optical interconnect prototype © 2009 IBM Corporation

17. Building a smarter planet Zurich Research Lab
Building and Maintaining a Health Ecosystem
 Broadly speaking, there are two foundational components of an
effective keystone strategy. The first is to create value within the
ecosystem […] the second is to then share the value within the
ecosystem (Iansiti, 2004)
 “Successful innovation requires tracking your partners and
potential adopters as closely as you track your own development
process” (R. Adner, 2006)
Supply Chain Ecosystem Strategy
Actively create and “manage” supplier base, create value
for suppliers ( support adoption of the technology in an
entry market).
Track ecosystem risk.
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© 2009 IBM Corporation

18. Building a smarter planet
Agenda
 IBM Research and Zurich Research Lab
 Collaborative Innovation at IBM
 Open collaboration: What does it look like?
 Jamming
 Next steps
18
© 2009 IBM Corporation

19. Building a smarter planet Zurich Research Lab
What is a Jam?
IBM’s approach for business collaboration and enterprise transformation
• Online collaborative
discussions for audiences
ranging in size from a few
hundred to hundreds of
thousands
• Innovation events to
capture the pulse of the
group or to solicit specific
ideas to critical business
issues
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© 2009 IBM Corporation

20. Building a smarter planet Zurich Research Lab
InnovationJams
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© 2009 IBM Corporation

21. Building a smarter planet Zurich Research Lab
How has IBM used Jams?
21 © 2009 IBM Corporation

22. Building a smarter planet Zurich Research Lab
The result of IBM InnovationJam
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© 2009 IBM Corporation

23. Building a smarter planet Zurich Research Lab
Can you Jam? Absolutely
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© 2009 IBM Corporation

24. Building a smarter planet
Client Jams
• First industry-wide virtual • CEO sponsored to identify
collaboration event to ideas to realize the
address the challenges company’s new strategy
facing the North American with it’s new values as the
supplier industry framework
• Over 150 companies with • More than 33% of Nokia
participants ranging from employees participated from
CEOs, to line of business 40 countries including
(LOB) executives, to factory workers, sales
functional VPs, middle teams, R&D and
managers and engineers manufacturing
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© 2009 IBM Corporation

25. Building a smarter planet
Agenda
 IBM Research and Zurich Research Lab
 Collaborative Innovation at IBM
 Open collaboration: What does it look like?
 Jamming
 Next steps
25
© 2009 IBM Corporation

26. Building a smarter planet Zurich Research Lab
What does your ecosystem look like?
?
? ?
? INNOVATION ?
ECOSYSTEM
? ?
? ?
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© 2009 IBM Corporation

27. Building a smarter planet
Zurich Research Lab
30 © 2009 IBM Corporation