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The Business Has Changed, Have You?
Succeeding in the New Economic Environment


Jamie Mendez, Program Director, IBM
jamendez@us.ibm.com
January 28, 2009
Prepared for the Business Marketing Association of Northern California




                                                              © Copyright IBM Corporation 2008
The world I live in is complex

PartnerWorld
    More than 100,00 Business Partners
    in 150 countries
    A tiered program that rewards
    Business Partners for investment and
    achievement
    IBM PartnerWorld as quot;bestquot; partner
    program among their top three*
    Easy to access resources: from
    marketing & sales, technical &
    collaboration to training and more
Ecosystem Initiatives
    More than 5,000 Business Partners
    Provides solutions development and
    go-to-market support
    Generates more than $1B in revenue
                                           * Results from IBM Market Intelligence annual PartnerWorld Program Study

                                                                             © Copyright IBM Corporation 2008
2
Headlines reflect the financial crisis and fears

“The Falling Pound Raises Fears of Stagnation”
“New York Borrows to Pay Jobless Claims”
“Home Construction Ends Worst Year Since 1959”
“Jobs Vanish as Exports Fall in Asia”
“American and United Post Losses for Quarter”
“EBay’s Income Declines 31% as Economy Reduces”
“In Britain and Spain, More Signs of Slowdown”
“Crisis in Europe and US Hurt Asian Economies”
“Shares Slide as Grim News Keeps the Markets on Edge”
“Sweden’s Fix for Banks: Nationalize Them“




                                                        © Copyright IBM Corporation 2008
 3
Yet broader forces are at work

Our world has become…

                   Pervasive connections and communications
      Smaller &
                   Emerging markets
       Flatter
                   Open trade

                                    Systems-level complexity
                    Riskier
                                    Viral spread of information
                                    Widening gap between information available
                                    and information effectively managed.

                                                      Instrumented
                                    Smarter
                                                      Interconnected
                                                      Intelligent


                          … And tomorrow's leaders will capitalize on the
                            new opportunities created
                                                                       © Copyright IBM Corporation 2008
4
The CEO Study findings have never been more relevant

       Findings from 1,130 interviews
          Organizations are bombarded by change, and many are struggling to keep up
          CEOs view increasingly demanding customers not as a threat, but as an opportunity to differentiate
          Nearly all CEOs are adapting their business models—two-thirds are implementing extensive innovations
          CEOs are moving aggressively toward global business designs, deeply changing capabilities and
          partnering more extensively



                                                                  Core Traits




                                                  1        2           3            4            5
                                                  Hungry   Innovative Globally      Disruptive   Genuine,
                                                  for      beyond      integrated   by nature    not just
                                                  change   customer                              generous
                                                           imagination

Source: IBM Global CEO Study 2008 – www.ibm.com

                                                                                                            © Copyright IBM Corporation 2008
       5
Companies need to do three things

                                      Exploit
      Focus on Value                                             Act with Speed
                                    Opportunities

    Do more with less            Capture share                 Manage change
       Cash/capital focus           Disrupt weak competitors     Clearly communicate
       Flexibility                  Acquisitions                 simple goals
                                                                 Seek and leverage
                                                                 experience
    Focus on the core            Build future capabilities
       Businesses                   Protect & acquire talent
                                                               Leadership
       Initiatives                  Develop required assets
                                                                 Get the information to act
                                                                 Set the agenda
    Re-align relationships       Change your industry
       Financial solidity of        Bold moves
                                                               Risk & Transparency
       suppliers, partners and      Position globally
       customers                                                 Business performance
       Revisit/renegotiate                                       management & analytics
                                                                 Risk management


                                                                          © Copyright IBM Corporation 2008
6
To succeed Business Partners need to team

Capitalize on the Hot Opportunities:

       Solutions

       Green IT

       Social Networking and Ecosystem
       Development

                                         “The days of partners being able to do everything
                                         are in the past. The only way partners can service
                                         the complex range of opportunity in the market is
                                         through the development of partner ecosystems.”

                                         - Patrick Lawton, CEO, VAR DU 360, quoted in eWeek
                                           Channel Insider




                                                                   © Copyright IBM Corporation 2008
7
Go to market…Do it socially

    The Wheel of Influencers Has Broadened


                                            EMPLOYEES   CUSTOMERS




                                                                            LOCAL
                               INVESTORS                                  COMMUNITY


                                                  COMPANY
                               ACADEMIC
                                                                           PARTNERS
                              COMMUNITY



                                           GOVERNMENT       MEDIA




                                                                     © Copyright IBM Corporation 2008
8                                                       Source: New Language of Marketing 2.0, 2009
Energize the channels and the community

The New Technology Vessels




                                                   © Copyright IBM Corporation 2008
9
                                      Source: New Language of Marketing 2.0, 2009
Go to market … Do it socially


     Value Proposition




                                             © Copyright IBM Corporation 2008
10
                                Source: New Language of Marketing 2.0, 2009
IBM Business Partner Ecosystem Initiative

                        6
                                 Market Selection
                             1


 Review &                                               Business Partner
                                                    2
              5
 Evaluation                                              Identification




                  Go-to-Market                          Business
                                                    3
              4
                   Execution                            Planning


                                                            © Copyright IBM Corporation 2008
11
Get started now!

     1
         Establish Leadership & Momentum



     2
             Make the Hard Decisions




     3
              Develop the Roadmap




     4
              Communicate the Plan



                                           © Copyright IBM Corporation 2008
12

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Bma Final Deck

  • 1. The Business Has Changed, Have You? Succeeding in the New Economic Environment Jamie Mendez, Program Director, IBM jamendez@us.ibm.com January 28, 2009 Prepared for the Business Marketing Association of Northern California © Copyright IBM Corporation 2008
  • 2. The world I live in is complex PartnerWorld More than 100,00 Business Partners in 150 countries A tiered program that rewards Business Partners for investment and achievement IBM PartnerWorld as quot;bestquot; partner program among their top three* Easy to access resources: from marketing & sales, technical & collaboration to training and more Ecosystem Initiatives More than 5,000 Business Partners Provides solutions development and go-to-market support Generates more than $1B in revenue * Results from IBM Market Intelligence annual PartnerWorld Program Study © Copyright IBM Corporation 2008 2
  • 3. Headlines reflect the financial crisis and fears “The Falling Pound Raises Fears of Stagnation” “New York Borrows to Pay Jobless Claims” “Home Construction Ends Worst Year Since 1959” “Jobs Vanish as Exports Fall in Asia” “American and United Post Losses for Quarter” “EBay’s Income Declines 31% as Economy Reduces” “In Britain and Spain, More Signs of Slowdown” “Crisis in Europe and US Hurt Asian Economies” “Shares Slide as Grim News Keeps the Markets on Edge” “Sweden’s Fix for Banks: Nationalize Them“ © Copyright IBM Corporation 2008 3
  • 4. Yet broader forces are at work Our world has become… Pervasive connections and communications Smaller & Emerging markets Flatter Open trade Systems-level complexity Riskier Viral spread of information Widening gap between information available and information effectively managed. Instrumented Smarter Interconnected Intelligent … And tomorrow's leaders will capitalize on the new opportunities created © Copyright IBM Corporation 2008 4
  • 5. The CEO Study findings have never been more relevant Findings from 1,130 interviews Organizations are bombarded by change, and many are struggling to keep up CEOs view increasingly demanding customers not as a threat, but as an opportunity to differentiate Nearly all CEOs are adapting their business models—two-thirds are implementing extensive innovations CEOs are moving aggressively toward global business designs, deeply changing capabilities and partnering more extensively Core Traits 1 2 3 4 5 Hungry Innovative Globally Disruptive Genuine, for beyond integrated by nature not just change customer generous imagination Source: IBM Global CEO Study 2008 – www.ibm.com © Copyright IBM Corporation 2008 5
  • 6. Companies need to do three things Exploit Focus on Value Act with Speed Opportunities Do more with less Capture share Manage change Cash/capital focus Disrupt weak competitors Clearly communicate Flexibility Acquisitions simple goals Seek and leverage experience Focus on the core Build future capabilities Businesses Protect & acquire talent Leadership Initiatives Develop required assets Get the information to act Set the agenda Re-align relationships Change your industry Financial solidity of Bold moves Risk & Transparency suppliers, partners and Position globally customers Business performance Revisit/renegotiate management & analytics Risk management © Copyright IBM Corporation 2008 6
  • 7. To succeed Business Partners need to team Capitalize on the Hot Opportunities: Solutions Green IT Social Networking and Ecosystem Development “The days of partners being able to do everything are in the past. The only way partners can service the complex range of opportunity in the market is through the development of partner ecosystems.” - Patrick Lawton, CEO, VAR DU 360, quoted in eWeek Channel Insider © Copyright IBM Corporation 2008 7
  • 8. Go to market…Do it socially The Wheel of Influencers Has Broadened EMPLOYEES CUSTOMERS LOCAL INVESTORS COMMUNITY COMPANY ACADEMIC PARTNERS COMMUNITY GOVERNMENT MEDIA © Copyright IBM Corporation 2008 8 Source: New Language of Marketing 2.0, 2009
  • 9. Energize the channels and the community The New Technology Vessels © Copyright IBM Corporation 2008 9 Source: New Language of Marketing 2.0, 2009
  • 10. Go to market … Do it socially Value Proposition © Copyright IBM Corporation 2008 10 Source: New Language of Marketing 2.0, 2009
  • 11. IBM Business Partner Ecosystem Initiative 6 Market Selection 1 Review & Business Partner 2 5 Evaluation Identification Go-to-Market Business 3 4 Execution Planning © Copyright IBM Corporation 2008 11
  • 12. Get started now! 1 Establish Leadership & Momentum 2 Make the Hard Decisions 3 Develop the Roadmap 4 Communicate the Plan © Copyright IBM Corporation 2008 12