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IBM, a story of continuous transformation


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Guest Lecture for ODISEE ( Thank you Prof. David Zaruk and Prof.Dr. Alea Fairchild for the kind invitation.

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IBM, a story of continuous transformation

  1. 1. 1 “The only way you survive is you continuously transform into something else. It's this idea of continuous transformation that makes you an innovation company.” Ginni Rometty, Chairman, President and CEO of IBM
  2. 2. A Story of Continuous Transformation Yves Van Seters, Marketing IBM Benelux February 2017 IBM Odissee, Brussels
  3. 3. IBM is in a constant state of Transformation … it’s in our genes
  4. 4. IBM is in a constant state of Transformation Innovation … it’s in our genes
  5. 5. Pop quiz
  6. 6. I’m going to tell you a Story of Transformation From This To This
  7. 7. A Story of Continuous Transformation… I’m going to tell you a Innovation From this To this Era of Tabulating Era of Computing Era of Programing Era of Cognitive 1884 Now
  8. 8. Innovation that spans decades 1924 ‘15 Floppy disks & barcode Deep Blue beats Kasparov ‘97 The punched card ‘28 IBM PC ‘81 IBM acquires the consulting brand of PWC ‘02 IBM sells PC division to Lenovo ‘05 IBM leads the transition towards a smarter world with Smarter Planet ‘08 The beginning of the cognitive computer era with Watson ‘15 IBM centennial and Watson wins Jeopardy! ‘11 Selectric typewriter ‘61 Mainframes ‘40-50
  9. 9. And it all started with this 9
  10. 10. And this 10
  11. 11. And this 11
  12. 12. And this 12
  13. 13. In 1911 we pulled all that together C-T-R 1911 Scales Time RegistersClocks Tabulators
  14. 14. And in between this C-T-R 1911 And now IBM 2017
  15. 15. We did all this…
  16. 16. Computer technology First Hard Disk Drive - 5Mb Storage
  17. 17. Space Programs Appolo projects
  18. 18. You can watch the movie… in theatres now 18
  19. 19. Travel Sabre electronic reservation
  20. 20. Banking Industry Magnetic stripe
  21. 21. Retail Universal Product code
  22. 22. Consumer Computing Personal Computer
  23. 23. Health Care Excimer laser surgery
  24. 24. Chess Deep Blue
  25. 25. Computer Technology Mainframe to Microserver
  26. 26. Automotive Battery 500
  27. 27. Renewable Energy IBM Sunflower
  28. 28. Cognitive technology (Ai) Watson
  29. 29. Chemistry Revolutionary Polymers (by accident)
  30. 30. Healthcare Watson Oncology,, Watson Clinical Trial Matching
  31. 31. Cooking Chef Watson
  32. 32. Cognitive Music Watson Beats
  33. 33. Weather Channel Weather means business
  34. 34. Internet of Things Watson Internet of Things
  35. 35. Cognitive Toys TJBot
  36. 36. 36 As an IBM’er, we believe in World Changing Progress. IBMers are convinced that the application of intelligence, reason and science can improve business, society and the human condition.
  37. 37. Or as Thomas J.Watson sr. would say it… 37 Recording of T.J.Watson, 1915
  38. 38. We have evolved over the years, from a hardware company to a more service-oriented company 38 ‘60s ‘90s ‘00s today‘10s Time IBM Revenue Mix 50% 0% 100% Hardware & systems management Services Middleware Analytics Platforms Cloud IaaS/PaaS Security Cognitive solutions
  39. 39. We transformed From this To this The Endicott, NY, toolmakers group, circa 1917 IBM Research Quantum Computing
  40. 40. Today IBM is the biggest technology innovation company in the world 40 2015 revenue $81 BN Annual R&D investment of 6% 6 IBM Nobel Prize winners 106 years young 6th brand in the world 24th year U.S. patent leader
  41. 41. 41 Continuous transformation is also driven by internal cultural change Equal opportunity workforce Employee education Corporate leadership in environmental responsibility
  42. 42. 42 We know only then can innovation succeed THINK Academy learning platform Global Innovation Jam for co-creation Corporate Service Corps to help world communities
  43. 43. 43 Sometimes we have a near dead experience… • IBM‘s transformation from HW to Services (‘90s) • IBM 360 – 5B$ Gamble (60’s) Transformation is never easy…
  44. 44. And yet we’re doing it again
  45. 45. The cognitive solutions and cloud platform company. The hardware, software, services company. 2002 - 2011 2011 - ?
  46. 46. 46 1. Data is becoming the world’s new natural resource 2. The emergence of cloud is changing IT and business processes 3. Mobile and social are changing the way in which humans interact IBM drives a digital revolution Our data is stored in the cloud New ways to interact Data abundance
  47. 47. Transformation is driving the evolution and creation of new business models Technology forces… Analytics & cognitive CloudMobile Internet of Things …are creating new experiences… Experience journey Digital ubiquity Omnichannel …and disrupting operational models. Traditional value chain Ecosystem Social Security
  48. 48. New business models disrupt legacy players 48 Source: The Battle Is For The Customer Interface, Tom Goodwin, Havas Media World’s largest transportation company… owns no vehicles World’s biggest media company… creates no content World’s most valuable retailer… has no inventory World’s largest accommodation provider… owns no real estate World’s largest video conference company… has no telco infrastructure
  49. 49. IBM is becoming a cognitive solutions and cloud platform company ! Like any othe transformation, it takes time… 49 ‘60s ‘90s ‘00s today‘10s Time IBM Revenue Mix 50% 0% 100% Hardware & systems management Services Middleware Analytics Platforms Cloud IaaS/PaaS Security Cloud platform Cognitive Solutions Cognitive solutions Half of IBM
  50. 50. ‘Digital’ is not the destination anymore but the foundation of a new era of business: cognitive business 50 ‘00s ‘10s ‘20s‘90s IBM addressable market ($B) 0 500 1000 1500 2000 2500 New market addressable by Cognitive Solutions Traditional addressable IT market Time
  51. 51. 51 • Understands structured and un-structured data such as natural language and puts it into context • Reasons by generating hypothesis, considering arguments and coming back with recommendations • Learns while being trained by experts and continuously becoming smarter with each piece of information Cognitive systems understand, reason and learn Understand Learn Reason
  52. 52. Helping our clients means understanding how current trends are impacting their industry 52
  53. 53. 53 Cognitive solutions help us think better and make more informed decisions. They extend human capabilities.
  54. 54. 54 • The cloud enables innovation, permitting clients to focus on a higher value • Cloud is at the heart of how IBM delivers value to its clients • IBM provides expertise, technology capabilities and an open ecosystem The world is being re-written in code and cloud is the platform where all of this is taking place Open ecosystem Technology capabilities Expertise
  55. 55. Cognitive business requires the right foundation 55 A cognitive strategy Robust data and analytics capabilities Cloud services optimized for industry, data and cognitive services IT infrastructure tuned for cognitive workloads Security for a cognitive era
  56. 56. The Cognitive Era is here to stay
  57. 57. 57 Cognitive helps us take the next steps in World Changing Progress, for business, society and individuals The North Face customers shop with Watson Using Watson to advance personalized cancer care in India Experiencing the U.S. Open with real time data
  58. 58. 58
  59. 59. Give Watson a try • Chef Watson: For the culinary adventurous among us. • Chef Watson Twist: Cocktails with a twist. • Watson Breakfast: Create your own breakfast cereal, have Watson advise you. • Watson Music: Have AI create your music • Watson Analytics: Enough playing. A cognitive system to analyze your structured and unstructured data • Bluemix: The place to start if they want to build an app infused with cognitive 60