MGT581 Business Foresight - IBM Case Study

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  • Focused on staying at the forefront of the science of computation and information
  • In 1914, Thomas J. Watson coined the “THINK” motto when he worked for the National Cash Register Company Also, it makes me remember Watson, Jr.'s three IBM basic beliefs: respect for the individual, customer service, and excellence. I have a copy of the 1963 book "A Business and its Beliefs - The ideas that helped build IBM" written by Thomas J. Watson Jr. It is a great read. A great quote in the book "Beliefs must always come before policies, practices, and goals. The latter must always be altered if they seen to violate fundamental beliefs“ Base the business on principles; impart these principles to employees and others with mottoes and slogans; Emphasize trusting relationships with clients With IBM’s approaching Centennial it is even more important for the company to systematically think about the future http://www-03.ibm.com/ibm/history/multimedia/think_trans.html
  • Global Technology Outlook Identifies a small number of umbrella topics; develop trends, industry scenarios, breakthrough technologies, and implications for IBM Global, open and collaborative team; topics are proposed, selected, and grouped; internal, external and industry specific presentations Academy of Technology Focuses on the technical underpinnings of IBM’s future; elected membership consists of the top technical leaders from around the world; independent Consultancies for Executives, Studies and Workshops, Topical Conferences, and other member-initiated activities Global Innovation Outlook New approaches to surfacing key insights and opportunities for business and societal innovation Open, collaborative, multi-disciplinary process; 2-3 broad topics/year; global deep dive sessions, including external experts; IBM spin-off projects Institute for Business Value Help GBS become the trusted business and technology advisor to the world's leading organizations; industry trends Thought leadership papers: CXO Studies, Future agendas, Value realizations studies (i.e., Government 2020, CEO Study) Market Insights Explores and analyzes potential future landscapes and assists decision makers in exploiting new market opportunities Techniques for a global perspective on: high potential industries, emerging technologies, new markets, geographies
  • Managing Uncertain Data at Scale Making revolutionary use of big data and analytics requires a paradigm shift to manage uncertain data at scale. Systems of People The ability to apply analytics to workforce pain points and capture insights about the way people work emerges with the adoption of social business. Outcome-Based Business Services’ success depends on a demonstrable understanding of the causal relationship between business outcomes and IT capabilities. Resilient Businesses and Services Globalization and consolidation trends increase enterprise exposure to natural disasters and cyber attack, and correspondingly heighten the need for resiliency. The Future of Analytics The explosion of unstructured data amplifies the need for development platforms and systems to support the scale and modalities of emerging analytics. The Future Watson Knowledge-extraction solutions intelligently ingest information in multiple forms and learn from human interaction to provide actionable business insight.
  • http://www.research.ibm.com/FOAK/index.shtml
  • http://www.ibm.com/smarterplanet/us/en/ibm_predictions_for_future/ideas/index.html
  • http://www.ibm.com/ibm/gio/us/en/resources.html
  • http://www-935.ibm.com/services/us/gbs/thoughtleadership/
  • In the early 1990s, the tremendous success IBM enjoyed as a result of its long-held leadership of the computer industry quickly unraveled as a result of shifts in the technology landscape and the company’s inability to change quickly. Revenues from mainframe computers, then the company’s mainstay, plummeted. “ You have to be willing to change even your core business, to be ahead of the shift,” says IBM Chairman Sam Palmisano.
  • http://www.nytimes.com/2008/11/06/technology/business-computing/06blue.html?_r=1 http://bits.blogs.nytimes.com/2010/01/12/big-blues-smarter-marketing-playbook/ http://www.ibm.com/ibm/sjp/speeches.html
  • http://www-03.ibm.com/press/us/en/pressrelease/20605.wss
  • MGT581 Business Foresight - IBM Case Study

    1. 1. David A. JarvisSalve Regina University, MGT581 Business Foresight & Futuring, June 4-7, 2012Business Foresight:IBM Case Study
    2. 2. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012How does a company survive 100 years? 2
    3. 3. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012 3
    4. 4. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012IBMers believe in progress – that theapplication of intelligence, reason andscience can improve business, societyand the human condition. IBM can help make the world work better 4
    5. 5. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012"And we must study through reading, listening,discussing, observing and thinking. We must notneglect any one of those ways of study. The troublewith most of us is that we fall down on the latter –thinking – because its hard work for people tothink, and, as Dr. Nicholas Murray Butler saidrecently, all of the problems of the world could besettled easily if men were only willing to think. " -Thomas J. Watson 5
    6. 6. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012“…any organization, in order to surviveand achieve success, must have asound set of beliefs on which itpremises all its policies and actions…“…the most important single factor incorporate success is faithful adherenceto those beliefs…”“...I believe that if an organization isto meet the challenges of achanging world, it must be preparedto change everything about itself...except those beliefs…” -Thomas Watson Jr., former chairman of IBM (1962) 6
    7. 7. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012 “…I believe that this capacity to adopt a longer perspective is a major national asset and an enormous competitive advantage.” “It determines how and where you invest and allocate resources.” “It changes your view of talent development.” “…guides the ethics and behavior or both management and employees.” “It shapes the way you see your company’s role in industry, and in society.” “…tells you how and when to take decisive action.” - Sam Palmisano, IBM CEO (Oct. 2010) 7
    8. 8. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012IBM has a diverse, evolving, set of internal foresight capabilitiesfocused on technology, society and business Global Academy of Global Institute for Technology Technology Innovation Business Outlook (AoT) Outlook Value (GTO) (GIO) (IBV) Market Corporate Business Ad-hoc Development Strategy unit strategy communities & Insights teams and interest (MDI) groups 8
    9. 9. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012 Global IBM Research’s vision of the future for information Technology technology Outlook (GTO) Conducted for more than a quarter century (since 1982) Forward looking (5-10 years out) Helps drive IBM’s ~$6B investment in R&D each year Synthesizes enormous insight from academia, our partners and clients around the world High impact technologies and game changing products & services High potential to create new businesses The goal of the GTO is to identify disruptive societal, technical and economic trends that might impact IBM and its clients and to investigate technology and business strategies to address them 9
    10. 10. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 20122012 GTO Topics – What does IBM Research think is going tobe important in the future? Managing Uncertain Systems of People Outcome-Based Business Data at Scale Resilient Businesses The Future of Analytics The Future Watson and Services 10
    11. 11. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012IBM’s First-of-a-Kind (FOAK) Program encourages collaborationwith early adopters around strategic market segments  Pushes early thought leadership and experiences with new technologies  Pilot experimental solutions & deliver working prototypes – Validate market requirements – Test market readiness  250+ projects completed  Recognized industry best practice FOAK accelerates the delivery of innovation from the research labs into the market 11
    12. 12. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012 12
    13. 13. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012 Ran from 2004-09, picked 2-3 topics per year Global Innovation Focused on broad and challenging topics – spanning Outlook geographies, generations, industries and interests (GIO) Surfaced insights and opportunities for business and societal innovation Open, collaborative, multi-disciplinary process Global deep dive sessions including external business leaders, academics, researchers and policymakers Helped to launch IBM spin-off projects Topics Water Security & Society Africa Media and Content Energy & Environment Transportation Future of the Enterprise Gaming & Leadership The Inventor’s Forum A New IP Marketplace Government Business of Work & Life Healthcare 13
    14. 14. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012 A global team of 50+ consultants who conduct research Institute for and analysis across multiple industries and functional Business Value disciplines (IBV) Produces thought leadership told from a client’s business perspective Business & Industry CXO Surveys Thought Leadership "By understanding weak signals and early indicators of industry transformation, we help our clients to be ahead of the pack.” 14
    15. 15. CEOs create economic value by cultivatingconnections within and across three domains Organizational openness introduces new opportunities to create value through employee collaboration Differentiate through better data access, insight and translation into actions Partner for innovation, disrupt, and derive revenue from new sources15 © 2012 IBM Corporation
    16. 16. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012Applying deep market knowledge, business Marketexpertise and insight creation assets to champion Development & Insightsactions that drive profitable growth for IBM (MDI) • Delivers market analysis that helps IBM leaders make strategic choices • Market analysis, competitor intelligence, client research, knowledge services • Delivers IP helping IBM clients and client team derive value from IT investments • Client analytics, value propositions, IBM Center for Applied Insights • Delivers actionable recommendations for long-term profitable growth • Global and country level insights, market deep dives 16
    17. 17. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012IBM’s market intelligence function has an ever-evolvingcapability focused on making new markets Crow’s Nest Emerging Future Corporate Strategic Markets Markets Strategy & Perspectives Perspectives Future Markets 2003-05 2004-07 2007-08 2008-09 2009-11 17
    18. 18. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012The Strategic Perspectives Team Vision – To accelerate the understanding of new or emerging markets, and act as a catalyst for future growth. Mission – The Strategic Perspectives Team will provide the initial foresight and insight for new and emerging market opportunities and competitive threats. – This includes providing a global perspective on high potential markets from competitive, industry, technological, and geographic perspectives and assessing the feasibility of, and opportunity for new markets. Future of Nuclear Energy ● Next Emerging Geographic Markets ● Consumer Product Goods in Rural China ● Climate Change/Energy & Environment ● Physical Infrastructure in Growth Markets ● Advanced Water Management ● Intelligent Buildings ● Smarter Cities ● 2015 Growth Strategy 18
    19. 19. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012IBM Center for Applied Insights“100 years of foresight: The importance of long-term thinking at IBM” “The practice of corporate foresight helps the enterprise avoid strategic surprise and reduce uncertainty in decision making. It allows the enterprise to think through the consequences of unanticipated change, envisioning what might be possible and deciding what would be preferable.” http://bit.ly/kdPG80 19
    20. 20. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012 Ad-hocHorizonWatch Community communities Objective and interest – Improve our ability to sense future business groups issues, trends and opportunities Demographics – 1900+ IBMers from all types of functions, divisions and geographies Focus – Emerging trends and technologies Conference calls – Topics are presented to the community by subject matter experts Diversity of the Collaboration platforms community means – Blog different perspectives, – Discussion forums – Bookmarks which enhances – File sharing collaboration and – Wiki sparks innovation 20
    21. 21. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012The 2012 HorizonWatch Technology Trends To Watch listcontains the building blocks of a Smarter Planet Top Trends – 2012 2012 1. Cloud Computing 2. Virtualization 3. Social Business 4. Mobile Computing 5. Big Data 6. Analytics 7. IBM Watson 8. Human / Computer Interaction Some of the trends on this list are more 9. Security mature in their adoption and development 10. Sustainability & Green IT than others. However, these are the key trends that CIOs and IT leaders will be 11. Consumerization of IT wanting information on during 2012.21
    22. 22. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012 IBM has gone through many phases in its lifetime... In the last ten year three trends have driven IBM’s evolution: 1. The integration of the global economy 2. New computing architectures 3. Clients shifting focus to innovation from productivity Over the last ten years IBM has shifted from a services company to a software and services company – divesting itself of personal computer and hard disk drive businesses
    23. 23. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012Something profound is now happening with the infusionof intelligence into the way the world works Our world is becoming INSTRUMENTED Our world is becoming INTERCONNECTED Virtually all things are becoming INTELLIGENT ... Our planet is becoming smarter 23
    24. 24. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012The origins of a Smarter Planet Realized we were transitioning between eras – the way the world works was changing Leadership was looking for a way to reinvigorate the IBM brand Should capture what is going on in the world and explain our corporate philosophy as a result of that Should show thought leadership; make other leaders advocates Should be something “IBM-ish”; plays to the company’s strengths and philosophy “…we are all now connected – economically, technically and socially. But…being connected is not sufficient… something is happening that holds even greater potential. In a word, our planet is becoming smarter.” 24
    25. 25. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012The origins of a Smarter Planet InnovationJam – 150,000+ people in 100+ countries brainstorming 2006 emerging business opportunities; 10 areas funded 2008 IBM Research’s “Instrumented Planet” study 2008 Company was looking for a new “big idea” “A Smarter Planet: The Next Leadership Agenda” speech at the Nov 2008 Council on Foreign Relations 2008-10 Series of op-ads in the New York Times and Wall Street Journal Sam Palmisano’s “Welcome to the Decade of Smart” speech at Jan 2010 Chatham House in London Smarter Planet wasn’t the result of a dedicated, standalone foresight process, but arose from multiple factors over time and a forward thinking culture 25
    26. 26. Business Foresight: IBM Case Study – Jarvis – MGT581 Business Foresight & Futuring, June 4-7, 2012What will it take to survive 200 years? 26

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