Randy Newell of IBM provided this in-depth look at the importance of developers, their work, and (by extension) ours in our society.

1. Randy Newell
IBM Software
Trusting the Future of Business
to Enterprise Developers
It’s Serious Business
© 2012 IBM Corporation

2. IBM Software
2 © 2012 IBM Corporation

3. IBM Software
For over 100 years, IBM has transformed industries and advanced
the world’s most critical systems
Pioneering the science Making the world The modern
of information work better corporation
The new tools of work The meaning of work The nature of work itself
3 © 2012 IBM Corporation

4. IBM Software
The world is changing and becoming more…
INTERCONNECTED
INSTRUMENTED
INTELLIGENT
The resulting explosion of information creates a
need for a new kind of intelligence…
…to help build a smarter planet
4 © 2012 IBM Corporation

5. IBM Software
There is an explosion of data and real-world events
2 Billion Internet users in 2011
1.3 Billion RFID tags in 2005
30 Billion
RFID tags in 2010
4.6 Billon
Mobile phones
world wide
Capital market Twitter process
data volumes grew 7 terabytes
1,750% 2003-06 of data every day
World Data Centre for Climate Facebook process
220 Terabytes of Web data 10 terabytes
9 Petabytes of additional data of data every day
5 © 2012 IBM Corporation

6. IBM Software
A smarter approach is needed to overcome these challenges
U.S. companies and retailers lose $40 billion
annually due to inefficient supply chains
In North America, up to 22 percent of total port volume
is empty containers. The Port of Jersey has 100,000 empty
containers sitting in storage – worth nearly $200 million
$11.5B worth of produce is wasted in India
because of outdated post-harvest infrastructure
Congested roadways cost $78 billion annually
in the form of 4.2 billion lost hours and 2.9 billion gallons
of wasted gas
6 © 2012 IBM Corporation

7. IBM Software
More interconnected, more
instrumented, more intelligent
Software is the invisible thread
enabling systems-of-systems
Software and systems delivery
has fiscal and societal impact
7 © 2012 IBM Corporation

8. IBM Software
Creating desired fiscal and societal outcomes
INTERCONNECTED
Healthcare
INSTRUMENTED
INTELLIGENT
8 © 2012 IBM Corporation

9. IBM Software
Healthcare delivery becoming mission-critical system-of-systems
Key objectives around efficiency, quality, innovation
Primary Care
Specialists Physician
Electronic PersonalINTERCONNECTED
Health Plans Health Record Health Record
INTERCONNECTED
INSTRUMENTED
INSTRUMENTED
Patient
INTELLIGENT
INTELLIGENTPharmacy /
Surgery
Labs
Employers Care Emergency
Providers Department
Medical Devices
Imaging, Pumps,
Robotics
Remote Emergency
Monitoring Services
State & Central
Programs Remote Telehealth
Data Diagnosis Consultation
9 © 2012 IBM Corporation

10. IBM Software
Emergency services system-of-systems
1. Implanted medical device generates event that notifies cardiac center
Enabled by:
 Heart disease is the leading cause of death
 200,000 lines of software code in the device
 Last year, heart disease cost the U.S. more
 Wireless transmissions (alarm signal,
than stream from device)
data $316 billion
 Monitors and sensors (event duration,
 With congestive heart failure cases, 30–50%
thresholds)
of patients are readmitted within 3 months
 GPS for location of implanted device
Patient
Remote
Cardiac Monitoring and
Center Data Diagnosis
10 © 2012 IBM Corporation

11. IBM Software
Emergency services system-of-systems
2. Cardiac center notifies ambulance dispatch and on-call specialist
Enabled by:
 Patient whose heart has short-circuited
 Wireless alarm to ambulance dispatch
has six minutes to live analysis based on data
– GPS location, initial patient
from device, EHR
 National standard is four-minute response
 Handheld device of cardiac specialist
time to 90% of all emergencies
– Today’s handheld has more computing power than
the first NASA space shuttle
Electronic
Health Record
Ambulance Cardiac
Dispatch Specialists
Patient
Remote
Cardiac Monitoring and
Center Data Diagnosis
11 © 2012 IBM Corporation

12. IBM Software
Emergency services system-of-systems
3. Ambulance dispatch prioritizes response based on patient criticality, location,
and ambulance readiness
Enabled by:
 Most ambulance services–report that only
 Ambulance queuing system analyzes available
10% ofsituational true life or death situations
health, calls are data
 Decision support of false– selects are due
 More than 80% system alarms resources
(fire, air Ambulance Fleet
to human Inventoryetc.)
support,
error
 Assign ambulance based on vehicle service Electronic
readiness, onboard staffing skills Health Record
Ambulance Cardiac
Dispatch Specialists
Ambulance
Transport Patient
Remote
Cardiac Monitoring and
Center Data Diagnosis
12 © 2012 IBM Corporation

13. IBM Software
Emergency services system-of-systems
4. Ambulance en route to patient – receives health information,
best routing, traffic management support
Enabled by:
 There arepatient’s electronic health record
 Access to 8,500 ambulance collisions per
 year in the U.S.
Real-time communications with cardiac center,
specialists, emergency department
 Ambulance transport costs range
 Route optimization based on patient location
Ambulance Fleet
from $300–$700, plus $10 per mile
Inventory
(GPS), traffic information
Electronic
 Integration with traffic management system Health Record
Ambulance Route Traffic Control Cardiac
Dispatch Optimization Management Specialists
Ambulance
Transport Patient
Remote
Cardiac Monitoring and
Center Data Diagnosis
13 © 2012 IBM Corporation

14. IBM Software
Emergency services system-of-systems
5. Ambulance arrives on-site, providing real-time patient information
to virtual team (ER, specialists)
Enabled by:
• 50-plus million lines of code in the vehicle
• –1,000 software components,minutes 10 different
Response time of five each with
doubles the survival rate
interfaces
–10,000 interfaces to track, update, test, deploy and
Ambulance Fleet
maintain forInventory 15 – 20 years
the next
Electronic
• Integration with vehicle monitoring system Health Record
• Real-time data transfer Route
Ambulance of patient vitals toControl
Traffic virtual Cardiac
Dispatch Optimization Management Specialists
team
Ambulance
Transport Patient
Remote
Cardiac Emergency
Monitoring and
Center Room
Data Diagnosis
14 © 2012 IBM Corporation

15. IBM Software
One industry, thousands of systems-of-systems scenarios
INTERCONNECTED
INSTRUMENTED
INTELLIGENT
Primary Care
Specialists Physician
Electronic Personal
Health Plans Health Record Health Record
Patient
Pharmacy /
Surgery
Labs
Employers Care Emergency
Providers Department
Medical Devices
Imaging, Pumps,
Robotics
Remote Emergency
Monitoring Services
State & Central
Programs Remote Telehealth
Data Diagnosis Consultation
15 © 2012 IBM Corporation

16. IBM Software
Braking software glitch contributes to recall of
hundreds of thousands of vehicles worldwide
- Associated Press
16 © 2012 IBM Corporation

17. IBM Software
Software patch prevents thousands from filing tax
returns electronically – $2.4 million to fix
- ZDNet
17 © 2012 IBM Corporation

18. IBM Software
Software may have been factor in deaths
of hundreds in ambulance response prioritization
- Telegraph.co.uk
18 © 2012 IBM Corporation

19. IBM Software
AA better approach to software
better approach to addressing
complexity and innovation
and systems delivery
19 © 2012 IBM Corporation

20. IBM Software
Software is key to addressing these challenges, transforming
the planet and making businesses smarter
Smarter energy Smarter Smarter Smarter Smarter
and utilities government healthcare transportation solutions
for retail
Smarter banking Smarter Smarter Smarter Smarter
insurance telecommunications chemical & electronics
petroleum
20 © 2012 IBM Corporation

21. IBM Software
Innovation is increasingly being driven by software
Mobile banking will be Today, electronics drive
the most widely used banking about 80% of the automotive
channel by 2020, if not sooner industry’s functional innovation,
and software is the key to most of it
Source: Mobile banking: A catalyst for improving bank performance, Deloitte, 2010;
21 and Jürgen Mössinger (2010), Software in Automotive Systems, IEEE Software, March/April 2010. © 2012 IBM Corporation

22. IBM Software
Transforming software and systems delivery brings
about dramatic business results
Volt was designed and engineered Reliance reduced development
in 29 months! time by 50%
Traditional Design and Engineering Traditional IT application development
Software-driven transformation Software-driven transformation
0 24 48 72 96 120
New Services and Features
(Development Timeline)
Reliance reduced development
New Technology Design and Engineering costs by 50%
(Timeline in Months)
Customer / Agent Service
(Development Costs)
Reliance Life Insurance
A Reliance Capital Company
22 © 2012 IBM Corporation

23. IBM Software
Answering the needs of developers
1
Technology solutions to drive new levels
of integration, collaboration and optimization
2 Community and skills initiatives that empower
developers and extend the development ecosystem
23 © 2012 IBM Corporation

24. IBM Software
Over the last three years, IBM has transformed its software portfolio
to address clients’ business and IT needs by…
Industries
Banking Energy Government Healthcare Education Traffic Retail Communi-
cations
Functions/roles
Marketing Finance Human Supply chain Executive IT
CMO CFO resources CSCO CEO CIO
CHRO
Business and IT needs
Turn Deepen Enable Deliver Accelerate Optimize IT Manage risk,
information engagement the agile enterprise product and and business security and
into insights with customers, business mobility service infrastructure compliance
partners and innovation
employees
24 © 2012 IBM Corporation

25. IBM Software
Three tenets of transforming software and systems delivery
Integrate Collaborate Optimize
Connecting process Unifying teams Simplifying governance
and information Projects, and Plans, scope,
Software, data, and tools organizational cultures and measures
Realized benefits:
• Improved quality and time-to-market
• Reduced risk and cost
• Tighter alignment to business priorities
25 © 2012 IBM Corporation

26. IBM Software
Software-driven innovation for IT organizations
Lifecycle capabilities
Business Planning and Alignment
STRATEGIC VALUE
Measure business effectiveness of projects | Prioritize IT investments
Understand business value of IT | Manage risk and impact of change
Integrated Application Lifecycle Management
Enterprise
Collaboration across teams, roles, platforms and geographies Modernization
 Customizable processes  Visibility and transparency Modernize
for collaboration and integrate
REDUCED COSTS
 Project planning linked
multi-platform
 Single version of truth to execution
development
Design, Development and Deployment
Requirements | Architecture | Modeling | Change and Configuration
Development | Testing | Deploy and Release | Operations
Open Platform for Data and Tools Integration and Automation
26 © 2012 IBM Corporation

27. IBM Software
The Jazz architecture
Extensible framework that dynamically integrates and synchronizes people,
processes, and assets associated with software development projects
 Open choice and rich integration
In-
house
tool
Uniform Resource Identifiers Standard Interfaces
Requirement DOORS Subversion
“I can link any resource to any “Each tool can evolve
other resource, regardless of independently without
where the resource lives!” Test Case
breaking integrations!”
Work Item RTC HPQC
Open Standards for the Lifecycle Integration Services
Dashboard
“Each domain can create standards “Each vendor can evolve Discovery
without having to wait on the others their tool to exploit the Process Mgmt
or get the whole industry to agree!” services that are valuable Project Mgmt
User Auth
Open Services for Lifecycle Collaboration
to customers like me!”
open community. open interfaces. open possibilities
 Evolutionary and incremental adoption
27 © 2012 IBM Corporation

28. IBM Software
Open Services for Lifecycle Collaboration (OSLC)
OSLC allows lifecycle tools to access and link to resources where the data lives
28 © 2012 IBM Corporation

29. IBM Software
OSLC @ open-services.net
 Eleven workgroups operating today
 338+ registered community members
(up from 70 people since June 2009)
 Individuals from 34+ different companies
have participated in OSLC workgroups
(up from 5 companies since June 2009)
 2.0 implementations starting to roll out
Individuals represented from:
Accenture Lender Processing Services
APG Northrop Grumman
Black Duck Oracle
Boeing QSM
BSD Group Rally Software
Citigroup Ravenflow
EADS Shell
Emphasys Group Siemens
Empulsys Sogeti
Ericsson SourceGear/Teamprise
Fokus Fraunhofer State Street
Galorath Tasktop (Eclipse Mylyn)
General Motors Thales
Health Care Services Corp Tieto
IBM TOPIC Embedded Systems
Institut TELECOM UrbanCode
Integrate Systems WebLayers
29 © 2012 IBM Corporation

30. IBM Software
IBM has set the bar for software and systems delivery platforms
“For the 6th time in 7 years, [IBM] Rational has achieved
the top overall ranking in our 2011 Users’ Choice Survey on
Software Development Platforms.”
2011 Users Choice Survey, Software Development Platforms, Evans Data Corporation
“Providing developers with a superior development environment and tools
is an essential strategic element of technology adoption and directly correlates
to the eventual success of platforms and vendors.”
“With Rational, IBM has set the bar very high and continues to raise it as the
product line evolves and grows to meet changing demands in the marketplace.”
Janel Garvin, CEO of Evans Data Corp.
30 © 2012 IBM Corporation

31. IBM Software
Milestones that matter:
IBM Software Acquisitions
31 © 2012 IBM Corporation

32. IBM Software
Answering the needs of developers
Technology solutions to drive new levels
of integration, collaboration and optimization
2 Community and skills initiatives that empower
developers and extend the development ecosystem
32 © 2012 IBM Corporation

33. IBM Software
IBM developerWorks drives skills and collaboration
Breadth and depth of
developerWorks audience
ILLUSTRATED BY 2011 TECH
TRENDS RESPONDENTS
4,000 93
IT professionals countries
25 22
industries roles
developerWorks by the numbers
4 million 1 million 40,000 34 7
local language
unique visitors Registered resources in dW industry sites account for
a month users technical library awards 33% traffic
33 © 2012 IBM Corporation

34. IBM Software
developerWorks knowledge paths
Online learning resource for structured roadmaps and essential resources
developerWorks knowledge paths
 Modular, one-stop shop for skills building
 Content of different types grouped
for a particular topic
 System tracks signed-in users’ skill learning progress
and provides ability to resume at later time
 35 knowledge paths – expanding translations
 39% of IT professionals stated they are “extremely Sample topics include
likely” to use an “online, self-paced, instruction and
 Agile software development
hands-on format to acquire new skills.
Source: 2011 Skills Survey  Basics of Linux system administration
 Build RESTful web services with Java technology
 Cloud computing: Fundamentals
 Migrating from Oracle to DB2
 Using NoSQL and analyzing big data
34 © 2012 IBM Corporation

35. IBM Software
Agile transformation zone
 Community hub provides entry point
for Agile practices
 Cross-capability, cross-industry
and cross-platform
 IBM led, open to external contributions
from customers and partners
 Four content themes:
– Early adoption
– Scaling agile
– Tales from the Trenches
– Agile executive
 Rich content – articles, webcasts, videos, learning resources, tweets, etc.
35 © 2012 IBM Corporation

36. IBM Software
Using transparency to drive customer satisfaction
Rational RFE Community: Inviting users to be a part of the IBM development team
 Organic, web-driven approach to gather
request for enhancements (RFEs)
 View into the “black box” of the
IBM software development process
“…The open sharing of RFE's that IBM is
now doing is a vital step in the right
 IBM teams can triage, accept or reject RFEs, direction… With the increased exposure
providing reasons why to the requestors and interest, it benefits us all, as the most
and the community popular RFE's will be delivered more
quickly.”
- Fidelity Investments
 More critical clients have created their own
secure groups and forums
By the numbers
 10-15% reduction in submitted RFEs
due to lack of duplication
 89% of all Rational RFEs come
in via the RFE Community
 100% of all RFEs receive initial response
in 60 days
36 © 2012 IBM Corporation

37. IBM Software
Training and certification
 Training:
– 45%: Traditional classroom training
(private and public)
– 30%: Self-paced virtual training
– Balance: Instructor-led online,
web-based, technical conferences
 122,650 certifications awarded in 2011
(up nearly 20% YTY)
 79 new certification exams,
64 new mastery tests
 59,462 business partner certifications/mastery skills
that counted towards the premier/advanced level
37 © 2012 IBM Corporation

38. IBM Software
2011 IBM Global Tech Trends Survey forecasts the future
Over 4,000 IT professionals, from 93 countries, 25 industries provided their
predictions about Business Analytics, Mobile, Cloud, Social business
What we learned…
Developers predict skills focus:
 Skills to maximize business analytics ROI
Automation (49%) and streamlining processes
(46%) are the two top BA focus areas in the
next two years
 Android skills needed more than ever
70% of organizations will be developing on it
in the next 2 years
 Demand in Cloud skills
75%+ of organizations will engage
in cloud computing in the next 2 years  People for a Smarter Planet Facebook
page helped reach emerging markets:
 Social application skills
43% of organizations plan to deploy social business – 388,862 post views
software internally, and 41% will deploy externally – Top age demographic for men and woman was
18-24 year olds
 Security and privacy skills
The top concern for mobile, cloud, and social business – Top countries in order: India, Egypt, U.S., Brazil,
U.K., Malaysia, Jordan, Germany, Canada, and
 Cloud and mobile – the power combo Saudi Arabia
51% will be leveraging cloud to power their mobile strategy
38 © 2012 IBM Corporation

39. IBM Software
2011 IBM Global Tech Trends Survey: Using what we learned
Three key initiatives for 2012
 Cloud teaching topics for academic faculty
– New area of our Academic Initiative site to help
professors teach Cloud skills to students
– Includes articles, course materials, and a private cloud
environment for use at universities
 The Great Mind Challenge – U.S., Feb. 2012
– Through the Spring semester, students will look at the
challenge of developing a social business strategy
for IBM business partner GBS
– 80 teams competing from 11 institutions, including Duke,
Notre Dame, Pace, Purdue and San Jose State University
 2011 Tech Trends Report for Cognos Mobile
is now live on the Apple AppStore – March 2012
– Engaging users by allowing them to manipulate
result data on the iPad
39 © 2012 IBM Corporation

40. IBM Software
The IBM Academic Initiative
Supported by a worldwide community of IBM volunteers
Mission
 Partner with schools, colleges and universities
to drive open standards
 Better educate millions of students for a more
competitive IT workforce
Offerings
 No charge access to IBM technology and tools
 Course materials and curriculum
 Education: Faculty and IT staff
Our goal
 New skills for 21st Century
40 © 2012 IBM Corporation

41. IBM Software
The Great Mind Challenge
Global Students build
skill-building technical and
program where business skills
students compete while solving real
for prizes world problems North America
 “Get Social. Do Business”
launched Q1 2012
 Cross-disciplinary with a focus
Introduces Collaboration on MBA students
students to the between
power of IBM IBM,
products and the business
developerWorks partners,
platform and faculty
41 © 2012 IBM Corporation

42. IBM Software
The Great Mind Challenge: India
Breaking records while building skills
 200,000 student registrations
(up from 44,000 in 2008)
 53,000 teams
 2,200 colleges and universities
 24,000 faculty registrations
 Ranked No. 1 activity conducted
by any corporation on campus
(AC Nielsen)
 Featured in India’s largest
software development contest:
Limca Book of Records
42 © 2012 IBM Corporation

43. IBM Software
System z Academic Initiative Program
Access to mainframes worldwide for teaching (no fee)
School Enablement – global
• 45 courses / modules, z/OS mastery exams,
coupons, professor seminars, ambassadors,
funding and support worldwide, job board,
faculty awards
• SystemzJobs.com – global job board
to connect students with employers
• Skills Help Desk
to assist clients and community
zskills@us.ibm.com
Student Mainframe Contests - global
• 7 years
• 32 countries
• 44,000-plus students
• 4,021 schools
Awareness – academic and industry
• Roundtables, conferences, and seminars
Expanding worldwide
43 © 2012 IBM Corporation

44. IBM Software
IBM Master the Mainframe Contest
Worldwide totals: 7 years, 32 countries, 4,000+ schools, 44,000+ students!
44 © 2012 IBM Corporation

45. IBM Software
Creating the closed loop
 Change measure of success –
% of students getting jobs
 Collaboration of:
– Employers (including hiring
managers)
– Faculty
– Students
– IBM (Academic Initiative and
technical experts)
 Citi, DTCC, Fidelity, JPMC
 Facilitate hiring
45 © 2012 IBM Corporation

46. IBM Software
“Bank of America is building a new generation of talent
to support our infrastructure. We’ve hired students
from colleges and universities enrolled in IBM’s
Academic Initiative.”
Kim Grim
Senior Vice President, Mainframe Engineering
Bank of America
“The students from those schools enrolled in IBM's initiative have
the knowledge and skills ready to support the IBM System z server.”
“For the past 18 months, Citigroup has actively pursued job
creation opportunities in mainframe computing. IBM's Master the
Mainframe Contest offers a great resource to secure candidates
and helps the company get critical skills as quickly as possible.”
Martin Kennedy
Managing Director
Citigroup
Contact: zSkills@us.ibm.com
46 © 2012 IBM Corporation

47. IBM Software
www.ibm.com/software/rational
© Copyright IBM Corporation 2012. All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind,
express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have
the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM
software. References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities
referenced in these materials may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature
availability in any way. IBM, the IBM logo, Rational, the Rational logo, Telelogic, the Telelogic logo, and other IBM products and services are trademarks of the International Business Machines
Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others.
47 © 2012 IBM Corporation

48. IBM Software
48 © 2012 IBM Corporation