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IBM, a story of continuous transformation

IBM has undergone continuous transformation from a hardware-centric company to a leader in cognitive computing and cloud services, emphasizing the importance of innovation. This evolution reflects a commitment to leveraging data, analytics, and cloud technology to create new business models and enhance human capabilities. As the organization adapts to changing market demands, it focuses on world-changing progress through intelligent applications and services.

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IBM, a story of continuous transformation

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1 “The only wayyou 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
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A Story ofContinuous Transformation Yves Van Seters, Marketing IBM Benelux February 2017 IBM Odissee, Brussels
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IBM is ina constant state of Transformation … it’s in our genes
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IBM is ina constant state of Transformation Innovation … it’s in our genes
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Pop quiz
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I’m going totell you a Story of Transformation From This To This
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A Story ofContinuous 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
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Innovation that spansdecades 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
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And it allstarted with this 9
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And this 10
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And this 11
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And this 12
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In 1911 wepulled all that together C-T-R 1911 Scales Time RegistersClocks Tabulators
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And in betweenthis C-T-R 1911 And now IBM 2017
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We did allthis…
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Computer technology First HardDisk Drive - 5Mb Storage
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Space Programs Appolo projects
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You can watchthe movie… in theatres now 18
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Travel Sabre electronic reservation
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Banking Industry Magnetic stripe
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Retail Universal Product code
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Consumer Computing Personal Computer
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Health Care Excimer lasersurgery
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Chess Deep Blue
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Computer Technology Mainframe toMicroserver
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Automotive Battery 500
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Renewable Energy IBM Sunflower
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Cognitive technology (Ai) Watson
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Chemistry Revolutionary Polymers (byaccident)
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Healthcare Watson Oncology,, WatsonClinical Trial Matching
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Cooking Chef Watson
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Cognitive Music Watson Beats
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Weather Channel Weather meansbusiness
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Internet of Things WatsonInternet of Things
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Cognitive Toys TJBot
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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.
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Or as ThomasJ.Watson sr. would say it… 37 Recording of T.J.Watson, 1915
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We have evolvedover 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
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We transformed From thisTo this The Endicott, NY, toolmakers group, circa 1917 IBM Research Quantum Computing
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Today IBM isthe biggest technology innovation company in the world 40 2015 revenue $81 BN Annual R&D investment of 6% 6 IBM Nobel Prize winners 106 years young 6th brand in the world 24th year U.S. patent leader
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41 Continuous transformation isalso driven by internal cultural change Equal opportunity workforce Employee education Corporate leadership in environmental responsibility
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42 We know onlythen can innovation succeed THINK Academy learning platform Global Innovation Jam for co-creation Corporate Service Corps to help world communities
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43 Sometimes we havea near dead experience… • IBM‘s transformation from HW to Services (‘90s) • IBM 360 – 5B$ Gamble (60’s) Transformation is never easy…
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And yet we’redoing it again
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The cognitive solutionsand cloud platform company. The hardware, software, services company. 2002 - 2011 2011 - ?
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46 1. Data isbecoming 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
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Transformation is drivingthe 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
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New business modelsdisrupt 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
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IBM is becominga 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
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‘Digital’ is notthe 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
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51 • Understands structuredand 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
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Helping our clientsmeans understanding how current trends are impacting their industry 52
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53 Cognitive solutions helpus think better and make more informed decisions. They extend human capabilities.
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54 • The cloudenables 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
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Cognitive business requiresthe 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
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The Cognitive Erais here to stay
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57 Cognitive helps ustake 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
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Give Watson atry • Chef Watson: https://www.ibmchefwatson.com/tupler For the culinary adventurous among us. • Chef Watson Twist: https://twist.ibmchefwatson.com/ Cocktails with a twist. • Watson Breakfast: https://www.bearnakedcustom.com/BearNaked Create your own breakfast cereal, have Watson advise you. • Watson Music: https://www.ibm.com/watson/music/ Have AI create your music • Watson Analytics: https://www.ibm.com/ms-en/marketplace/watson-analytics Enough playing. A cognitive system to analyze your structured and unstructured data • Bluemix: https://console.ng.bluemix.net/ The place to start if they want to build an app infused with cognitive 60

Editor's Notes

#2 Add a quote or interesting fact to tell a personal story. ---- Other interesting quotes: Quotes by Ginni Rometty, Chairman, President and CEO of IBM “Don't let others define you. You define yourself.” “If you're clear on what you believe, you have a great foundation to go make a market.” “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.” Quotes by Thomas J. Watson “Good design is good business” “Design must reflect the practical and aesthetic in business but above all... good design must primarily serve people.” “Whenever an individual or a business decides that success has been attained, progress stops.” “Once an organization loses its spirit of pioneering and rests on its early work, its progress stops.”
#4 Start of part 1 of the IBM Benelux brand storyline
#5 Start of part 1 of the IBM Benelux brand storyline
#6 Who of you know IBM ? Who recently visited a supermarket ? Who withdrew cash from an ATM ? Who booked an online vacation / Flight tickets ?
#7 From this Victorian Moustaches to Avatars speaking to you in natural language
#8 Transforming = innovating From tabulting, to computing, to programming to Cognitive
#9 IBM over the years: Highlight 1-2 key moments relevant for your audience Highlight the changes in logo design (see information below) --- Beginnings of IBM The Computing-Tabulating-Recording Company, the precursor to IBM, was founded on June 16, 1911. At its beginning, it was a merger of three manufacturing businesses, a product of the times orchestrated by the financier, Charles Flint. From these humble beginnings sprang the company that Thomas Watson Sr. would mold into a global force in technology, management and culture. --- Logo transformation: In 1956, Watson Jr. hired as the company’s design consultant Eliot Noyes, a well-respected architect and former curator of industrial design at New York’s Museum of Modern Art. Noyes’s goal was to create a first-of-a-kind corporate design program that would encompass everything from IBM’s products, to its buildings, logos and marketing materials. The goal was much more than consistency of look and feel. It marked perhaps the first time in which a business organization itself—its management, operations and culture, as well as its products and marketing—was conceived of as an intentionally created product of the imagination, as a work of art. Some of the greatest creative talents of the day, including Charles and Ray Eames, Eero Saarinen, Paul Rand and Isamu Noguchi— created an equally broad range of creative expressions. Rand’s series of IBM logos culminated in a 1972 version formed from stacked stripes, suggesting speed and dynamism, which made the company’s initials instantly recognizable worldwide. The “8-bar” logo is still in use today. IBM’s philosophy of design has influenced many other enterprises and institutions in the decades since Noyes. Design is now seen as essential for organizations to express their brands and their values—from Apple’s iPhone, to Starbucks’ in-store experience, to Disney’s entertainment venues. Indeed, in recent years, companies have employed the principles of so-called “design thinking,”—including observation of how humans interact with new things, rapid prototyping and collaboration across multidisciplinary teams—to create everything from consumer services to business strategy. At IBM, such methods are being applied to the design of its client briefing centers, and to the recruitment and onboarding of new employees. Source: http://ibm.co/1pB6NKu
#10 Source: IBM, Icons of Progress, http://www-03.ibm.com/ibm/history/ibm100/us/en/icons/founded/
#11 Source: IBM, Icons of Progress, http://www-03.ibm.com/ibm/history/ibm100/us/en/icons/founded/
#12 Source: IBM, Icons of Progress, http://www-03.ibm.com/ibm/history/ibm100/us/en/icons/founded/
#13 Source: IBM, Icons of Progress, http://www-03.ibm.com/ibm/history/ibm100/us/en/icons/
#14 Source: IBM IBM, Icons of Progress, http://www-03.ibm.com/ibm/history/ibm100/us/en/icons/founded/
#17 Source: http://www-03.ibm.com/ibm/history/ibm100/us/en/icons/
#18 Source: http://www-03.ibm.com/ibm/history/ibm100/us/en/icons/
#19 Source: The Heroines of Hidden Figures are also STEM Heroes, IBM YouTubeChannel https://www.youtube.com/watch?v=XetHU_pAWOo
#20 Source: http://www-03.ibm.com/ibm/history/ibm100/us/en/icons/
#21 Source: http://www-03.ibm.com/ibm/history/ibm100/us/en/icons/
#22 Source: http://www-03.ibm.com/ibm/history/ibm100/us/en/icons/
#23 Source: http://www-03.ibm.com/ibm/history/ibm100/us/en/icons/
#24 Source: http://www-03.ibm.com/ibm/history/ibm100/us/en/icons/
#25 Source: http://www-03.ibm.com/ibm/history/ibm100/us/en/icons/
#26 Source: http://www-03.ibm.com/ibm/history/ibm100/us/en/icons/
#27 Source:IBM Researrch: http://researcher.watson.ibm.com/researcher/view_group.php?id=3203
#28 Source: New Atlas magazine, 9 October 2014, http://newatlas.com/ibm-sunflower-hcpvt-pv-thermal-solar-concentrator/33989/ Image: Image: Airlight Energy/dsolar
#29 Image: http://watson2016.com/
#32 Image: http://kernelmag.dailydot.com/issue-sections/features-issue-sections/12075/ibm-chef-watson-supercomputer/
#35 Source:
#36 Source: ibm.biz/mytjbot
#37 This is our brand’s enduring idea; where we appeal to a higher self. Our conviction is ‘be a great company and therefore a great brand’.
#39 IBM’s revenue mix was mainly related to hardware and system management products. Over the years services started to increase. --- Logo transformation: In 1956, Watson Jr. hired as the company’s design consultant Eliot Noyes, a well-respected architect and former curator of industrial design at New York’s Museum of Modern Art. Noyes’s goal was to create a first-of-a-kind corporate design program that would encompass everything from IBM’s products, to its buildings, logos and marketing materials. The goal was much more than consistency of look and feel. It marked perhaps the first time in which a business organization itself—its management, operations and culture, as well as its products and marketing—was conceived of as an intentionally created product of the imagination, as a work of art. Some of the greatest creative talents of the day, including Charles and Ray Eames, Eero Saarinen, Paul Rand and Isamu Noguchi— created an equally broad range of creative expressions. Rand’s series of IBM logos culminated in a 1972 version formed from stacked stripes, suggesting speed and dynamism, which made the company’s initials instantly recognizable worldwide. The “8-bar” logo is still in use today. IBM’s philosophy of design has influenced many other enterprises and institutions in the decades since Noyes. Design is now seen as essential for organizations to express their brands and their values—from Apple’s iPhone, to Starbucks’ in-store experience, to Disney’s entertainment venues. Indeed, in recent years, companies have employed the principles of so-called “design thinking,”—including observation of how humans interact with new things, rapid prototyping and collaboration across multidisciplinary teams—to create everything from consumer services to business strategy. At IBM, such methods are being applied to the design of its client briefing centers, and to the recruitment and onboarding of new employees. Source: http://ibm.co/1pB6NKu
#41 Corporate fact-sheet Brand ranking: IBM uses as a standard Interbrand rankings. Last ranking available is that of 2016: https://ibm.biz/Bdsx3M 24th consecutive year US patent leader: http://ibm.co/2j9PvsN 105 years young: The Computing-Tabulating-Recording Company, the precursor to IBM, was founded on June 16, 1911. At its beginning, it was a merger of three manufacturing businesses, a product of the times orchestrated by the financier, Charles Flint. From these humble beginnings sprang the company that Thomas Watson Sr. would mold into a global force in technology, management and culture. Source: http://ibm.co/1kYh9pA. IBM will be 106 years old in June 2017.
#42 Use these 3 examples or replace these by other examples that appeal more to you or your audience. You can find additional examples in the hidden slides that follow. No more than 3 examples allowed. If possible avoid using/showing the text underneath the title for each example. --- Equal opportunity workforce IBM’s culture of inclusiveness dates back to the early 20th century. In the 1950s, Thomas Watson Jr. took a stand by saying IBM hired “people who have the personality, talent and background necessary to fill a given job, regardless of race, color or creed.” --- Employee education Even in the difficult early years of IBM, from 1916 to 1922, when bank loans where needed to cover the payroll, the company found a way to fund employee education. --- Corporate leadership in environmental responsibility For more than 40 years, IBM has been ahead of the curve on environmental issues. In 1974, for instance IBM set out to eliminate the PCBs (polychlorinated biphenyls) from its products, and achieved its goal worldwide by 1978. --- For more information on these icons of progress please go to: A culture of THINK (link) Global Innovation Jam (link) Corporate Service Corps (link) Building an equal opportunity workforce (link) A commitment to employee education (link) Corporate leadership in environmental responsibility (link) Good design is good business (link)
#43 Use these 3 examples or replace these by other examples that appeal more to you or your audience. You can find additional examples in the hidden slides that follow. No more than 3 examples allowed. If possible avoid using/showing the text underneath the title for each example. --- Think Academy The IBM Think Academy was launched almost 2 years ago and how has over 18 topics. Hundreds of thousands of IBMers are using this platform to learn together. IBM’ers can earn THINK40 credits at the end of each module and can learn on the go, using any platform they want (mobile, tablet, PC). The Think Academy helps IBM’ers learn faster and make the most of their time. Employees can use IBM tools to personalize their experience, collaborate with other IBMers as they learn together, and put that knowledge to work in their job and life. --- Global Innovation Jam IBMers have been using jams since the 90s to connect, create something new and accelerate change. In July 2006, IBM kicked-off arguably the largest brainstorming session ever held: 72-hour sessions online with 150,000 participants from 104 countries and 67 different companies. --- Corporate Service Corps Launched in 2008, this program helps world communities solve critical problems while providing IBM employees unique leadership development opportunities. By early 2011, 1000 IBMers had participated in 100 engagements in nearly 20 countries. For the last eight years, the IBM Corporate Service Corps has helped communities in more than 35 countries by applying IBM’s top talent, technology and problem solving skills—while entering new markets and developing future leaders. Each year we send up to 500 IBMers in teams of 10-15 on month-long assignments to developing countries, partnering with local communities, NGOs and now partner teams from our clients. Since its inception, IBM Corporate Service Corps has completed over a thousand projects valued at over $70 million. In 2015, the Corporate Service Corps focused on women and girls’ education, empowerment and health as well as economic development and environmental sustainability in Asia, the Middle East and Africa, Latin America and Eastern Europe. Interesting article on Corporate Service Corps on Harvard Business Review (2014): https://ibm.biz/BdEPb2 --- For more information on these icons of progress please go to: A culture of THINK (link) Global Innovation Jam (link) Corporate Service Corps (link) Building an equal opportunity workforce (link) A commitment to employee education (link) Corporate leadership in environmental responsibility (link) Good design is good business (link)
#49 Source: The Battle Is For The Customer Interface, Tom Goodwin, Havas Media
#50 Half of IBM’s revenue mix is now related to cognitive and cloud. ---- Story around IT infrastructure: By 2020, nearly half the world’s server market will move to cloud service providers, and these new buyers are already pushing the limits of infrastructure technology. As organizations begin to embed data and analytics into every business process and every customer experience, they are finding that their existing IT infrastructure was not designed to drive performance for systems that are continuously streaming data, finding correlations, creating hypotheses, learning through experience and, ultimately, driving better decisions. Cognitive workloads will require a re-imagined IT infrastructure—one that can synthesize massive amounts of data quickly, accelerate analytics, and be available and trustworthy 24x7.
#51 We see that a large market is now addressable by cognitive solutions.
#52 Think ‘U-R-L’ – Understand, Reason and Learn Understands human language and puts it into context: The ability to understand structured and unstructured data, text-based or sensory in context and meaning, at astonishing speed and volume. Here you can give the example of ’the Big Apple’. Watson would understand you are talking about New York and not an actual big apple Reasons by generating hypothesis, considering arguments and coming back with recommendations: The ability to form hypotheses, make considered arguments and prioritize recommendations to help humans make better decisions. Here you can give the example of Watson helping doctors reduce diagnostic errors, giving them hypothesis of what the patient could have based upon their medical history, research papers, etc. Learns while being trained by experts and continuously becoming smarter with each piece of information: Ingest and accumulate data and insight from every interaction continuously. Trained, not programmed, by experts to enhance, scale and accelerate their expertise.
#53 The huge amount of data is transforming industries and professions (e.g. healthcare, utilities, government/education, media). Every industry and profession’s knowledge is expanding at a rate faster than any professional can keep up with. While there are great benefits from applying the individual technologies, the greatest value comes from putting these capabilities together, in the context of an industry or profession. (Note: This data is from WW, this is not local data)
#54 It’s a different way of processing information so that it becomes actionable and useful to us in our daily personal and professional lives. It’s not about Artificial Intelligence but about Augmented Intelligence.
#55 ‘Digital builders’ are reimagining everything from banking, to retail and transportation; and cloud is the platform where all of this is taking place . The world is being re-written in code, connecting to pipelines of data and integrating application programming interfaces (APIs). --- IBM is a cloud platform company. We put together all of the pieces for our customers to prosper with modern technology. Winners in the digital economy bring together capabilities from a variety of sources to deliver business value rather than doing it all themselves. IBM Cloud is building a hybrid cloud platform for business innovation and a cognitive enterprise, helping business leaders, IT leaders and developers use hybrid cloud to accelerate introduction of a compelling customer experience, new innovative business models and operational processes built for speed and flexibility. We bring together three essential elements: 1. Expertise: We provide the business, technology and financing expertise to guide our customers in setting the digitization strategy that best fits their business, industry and regulatory needs. 2. Technology Capabilities: We provide the essential hybrid cloud capabilities that provide the core of what our clients need to innovate at speed and let them easily use all internal and external sources of value. 3. Open Ecosystem: We have chosen an open path to participate with the broadest ecosystem and set of open communities for our client’s success to remove any limits from the innovation possibilities and future flexibility. That allows others to develop and bring value on the platform.
#56 To become a cognitive business you need the right foundation: A cognitive strategy Determine what data you need, which experts will train the system, where you must build more human engagement, which products, services, processes and operations should be infused with cognition, and which parts of the unstructured 80% of data you most need to focus make discoveries for the future. Robust data analytics capabilities Collect and curate the right data—data you own, data from others, data available to all; both structured and unstructured. Apply cognitive technologies to this data to sense, learn and adapt, creating competitive advantage. Cloud services optimized for industry, data and cognitive services The building blocks for products and services are code, APIs and diverse data sets. The platform you choose to develop on and the agile development culture and methods you embrace, will be critical to success. IT infrastructure tuned for cognitive workloads Architect a new kind of IT core—a heterogeneous infrastructure that serves as the backbone of your enterprise. Do this rapidly and affordably by harmonizing technologies from public, private and hybrid cloud with distributed devices, IoT instrumentation and your existing systems. Security for a cognitive era As cognition makes its way into cards, buildings, roadways, business processes, fleets, supply chains – securing every transaction, piece of data, and interaction becomes essential to ensure trust in the entire system – and in your brand and reputation.
#57 Start of part 3 of the IBM Benelux brand storyline
#58 3 WW examples. For more international stories to share please visit: http://www.ibm.com/annualreport/2015/ Maximum 3 local examples. ---- The North Face customers shop with Watson North Face is using Watson technology to further improve its customer shopping experience. In a public beta, online shoppers ask questions in natural language and receive tailored outerwear recommendations. The North Face was already known for using technology to deliver better shopping experiences—and now they’ve got Fluid XPS™, a Watson powered application developed by our ecosystem partner Fluid, Inc. In a public beta, online shoppers ask questions in natural language and receive tailored outerwear recommendations. Going ice climbing in Colorado? Hiking in Denali this summer? Wherever you’ll be, The North Face and Watson have you covered, literally. Using Watson to advance personalized cancer care in India More than 200,000 people receive cancer care at Manipal Medical Center facilities each year. Now, using natural language, Manipal’s clinicians use Watson for Oncology to explore treatment options and gather evidence specific to a patient’s individual health needs. U.S. Open The U.S. Open has created game-changing fan experiences using IBM technology. We have helped fans understand exactly what is happening with racket, ball and body at speeds too fast for the human eye. Data has become essential to modern sports—not only for managers, owners and athletes, but also for fans. And one of the pioneers of this new era has been IBM, developed through partnerships such as our 20-year-plus relationship with the U.S. Open to create game-changing fan experiences. Today, it involves cloud, mobile, analytics and social computing. Combining real-time court data with years of historical U.S. Open results, we power scoreboards on courts and around the grounds, serve-speed displays, USOpen.org, the U.S. Open official apps, TV broadcasts and more. We help fans understand exactly what is happening with racket, ball and body at speeds too fast for the human eye. And because the technology was powered by IBM cloud infrastructure, the U.S. Open is able to scale up or down automatically, depending upon spikes in demand on the popular USOpen.org website and other services.
#59 Source: Youtube, IBM DeveloppersWork TV, https://youtu.be/naM_MPMJWqY

IBM, a story of continuous transformation

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