IBM Business Partner Kickoff 2013


Creating the IBM strategy map


Jan Simonsen,
Business Unit Executive
SWG Channel Nordic




                                    1
All men can see the tactics I use to conquer, but what none of
them can see is “the strategy out of which victory is evolved.”
Sun Tzu


However beautiful the strategy,
           you should occasionally look at the results.
Winston Churchill




                                                              2
Learning




How can the following benefit you as Business Partner?

  1. Understanding a strategy map

  2. Knowing the IBM Strategy

  3. Understanding your own strategy and the market




                                                         3
Why strategy (for us)?




  To understand why you do what you do

       (and what you need to change to stay on course)




  To understand (and show that you understand)

              your own and the customer plans and needs




                                                          4
What do your partners and customers really want ?




   “SELLING WONT HELP – BUT HELPING WILL SELL"
                                                    5
How much do you KNOW about your own,
IBMs and customers strategies!

No guessing !




                                  6
2 bn pipe
    800m valid
7
             7
The Strategy Map - Keeps it simple




  A way to visualize the goals strategies and tactics
  which a company has in place to perform as promised
  to its shareholders, employees and community.




                                                        8
Grundfos
       Strategy Map                                         Longevity – Grundfos a company Built to Last
            Financial Health
                                                Plan for Growth                                         People Strategy           Technical R&D          Sustainability
---------------------------------------------------------------------------------------------------
         Debt free = invest ready
                                                                                                   Leveraging Human Capital   Innovation & Invention


           Existing Markets             Emerging                               New Products & Services                        First of a kind products
                                         Markets

         Grow Services business        Plan for future            Innovation intent – by        Turnkey projects –             More intelligence in
                                          growth;                   2025 a third of the           pump stations                     products
           Grow services to be                                    turnover generated by
                                    *Global perspective,
          30% of total revenue by                                  products & services                                         Security , Intellectual
                                    *Production outside                                             E-learning
                   2015                                           which extends beyond                                            Property (IP)
                                    EU,
         • Expand the business                                      the core business
                                    * Structural adaption                                      Pro-active services ->
         • Pumps that add value                                                                                                Focus on innovation
                                                                    New products will         professional end-users
                                      Take the lead by              generate 1/3 of the
         •Instrumention of              opening new                                           Improve cross selling           Constant improvement
                                                                        revenue
         pumps and a need to         markets and create                                                                       of product development
         collect the data from       business based on                                     •Solutions incl services              increase with 10%
                                                                  Increase market share
         pumps                          the need for                  in water utility     •Projects
         •Act and provide                sustainable                     segment                                                Re-inforcement of
                                          solutions                                        •Products
         services on the                                             Change to more                                               research and
         collected data               Establish strong                                                                             technology
          Maintain by Customer                                       service oriented         Grow through solutions
                                      position in China                                                                       development ensuring
                  Loyalty                                               business                not yet developed
                                                                                                                               production capacity
                                                                                                                               close to the market




                                              Support for Growth initiatives

          Customer Insight; get     •Acquisitions               Competence center close          Partner Relationship
          closer to the end-user                                  to Copenhagen with             as part of value chain
                                    •Growth through new          clusters in Russia and
                                    business areas              France to capture market
                                    •Staff growth 18 000                  share
                                    – 75 000



                                                                     GOAL          STRATEGY          TACTIC
Grundfos
       Strategy Map
                                                              Longevity – Grundfos a company Built to Last

         Plan for Growth                Financial Health                       Technical R&D                     People Strategy                             Sustainability

---------------------------------------------------------------------------------------------------
                                     Debt free = invest ready
                                                                                Innovation &
                                                                                  Invention                Leveraging Human Capital



               Invest in latest           Control Costs            Invest in latest IT           Global Working                                        CSR                   Develop
           technology to support                                      technology                     culture                                                              organizational
                 Innovation                                                                                                                                              culture to foster
                                                                   = transformation
                                                                                                                                                                           and promote
                                                                       Enabler                        Develop the                                   Green Focus
                                                                                                                                                                        sustainability and
                                                                                                    organization to
                                                                                                                                                                          environmental
          Invest financial surplus        Operational               Best in Class IT                 become more                                    CO2 emission          responsibility
            in new sustainable        Excellence & Internal                                         environmental                                    must never
          technologies, products       progress efficiency                                            responsible                                  exceed 124 000
                                                                 Supporting Platforms
               and solutions                                                                                                                        tons per year
                                                                                                                                                                           Support
                                       Constantly improve                                       Become a unified                                   Act on climate      awareness in the
               Invest in New                                     Variable vs fixed cost            company by                                         changes
                                       performance of the                                                                                                                world – about
          technologies & product          organisation                                                                                                                 climate changes
                                                                     Benchmarking              • Become truly
                 solutions                                                                                                                          Government         and the need for
                                                                 internally & externally         Global
                                         Work Smarter =                                                                                             regulations           sustainable
           Investments in R&D                                                                  • Consultning
                                         Smarter Worker             Communication                                                                                           energy
              2011 – 1 BDKR                                                                      Approach,                                                             consumption and
          Capital investments to                                •Across people/regiion
                                         Logistic RFID /                                       • Attracting people                                                        production
           double in 2011-< 1,5                                 companies
                   BDKR                Tracking / Smarter                                       Keep mindset with                                                        Publish the
                                                                • Ease of comm tools            75 000 employees                                                       Grundfos view to
                                                                                                                           Employeer of choice
                                                                                                      2025                       (EOC)                                    influence
                                                                                                                                                                        politically & in
                                                                                               By on-boarding / off
                                                                                                                           Attract right people                          community
                                      Supremely optimized                                          boarding of
                                                                                                   employees
                                                                                                                         Inter cultural with many                        Sustain market
                                                                                                                          nationalities involved                         leader position
                                       SCM optimization                                        Focus on core skills
                                                                                                                         Grundfos Brand as EOC
                                     Stronger Procurement                                       24x7 Education ->                                                          Focus on
                                          Involvment                                           ”E”cademy; internal                                                     customer needs &
                                                                                                                          Secure satisfied and
                                                                                                   & external                                                            Satisfaction –
                                                                                                                          motivated employees
                                       Business Process                                                                                                                 loyalty score 82
                                        Manufacturing /                                                                                                                    out of 100
                                         Optimization                                                                     Employee Satisfaction
                                                                                                                              & motivation
                                                                                                                         •Need to increase
                                                                                                                         satisfaction -> decline
                                                                                                                         from 2007-2010
                                                                                                                         •Talent Development




                                                                         GOAL            STRATEGY          TACTIC
IBM 2015




 What do you know about the IBM 2015 strategy?

 What are the 6 levers that will drive $10 EPS to $20 EPS




                                                            11
6 Levers driving USD 10EPS Growth




                                    12
IBM
       Strategy Map
                                                                                           2015 Roadmap => $20EPS
                                                                                                                                                     Provide long term                                Lead the Industry              Employer of
                                                   Revenue growth (focus               Making Customers:
                                                                                                                                                         Value to                                                                      Choice
---------------------------------------------------------------------------------------------------
                                                     on SW) providing
                                                     Business Value to
                                                                                       • More Innovative
                                                                                       • More Competitive
                                                                                       • More Effective:
                                                                                                                                                       Shareholders
                                                                                                                                                          (70Bn)
                                                                                                                                                                                                     through Innovation/
                                                                                                                                                                                                     Ability to adapt to a
                                                                                                                                                                                                    changing Environment
                                                                                                                                                                                                                                  (Leverage Human
                                                                                                                                                                                                                                       Capital)
                                                        Customers




           Growth          Growth               Smarter                    World leader in                   Cloud                          Base
           Growth
         Initiatives    Markets (30%             Planet                       Business                   (7Bn by 2015)                     Growth
         Initiatives
          (20Bn by      of GEO Rev           (10Bn by 2015)                   Analytics
            2015)         by 2015)                                         (16Bn by 2015)
                                                                                                                                                                                                         Expand,               Share Repurchase
                                                                                                                                                                                                      Operating, Pre-            (50Bn in stock
            15                                Smarter Cities               BAO                                                       Industry Solutions                                                 Tax & Net             purchases) & 20Bn in
          Growth                                                                                                                     Security                                                            Margins                    Dividend
                                              Smarter Commerce             Predictive Analytics
           Plays                                                                                                                     Information Mgmt


                         Doubling Branch                                 Strengthen Business
                            Locations                                    Partner Eco System
          Organic
                        (100 beyond Large                                    (27000 BPs
                          Cities & BRIC)                                       certified)
                                                                                                                                                                                                  Operating Leverage
                         Broaden base
                         Skills and R&D                                                                                                                   Improve
                                                                                                                                                         Enterprise                                    Shift to higher          Divest
                          Capabilities                                                                                                                                                               margin Business          Commodity
                                                                                                                                                        Productivity
                                                                                                                                                       (8Bn by 2015)                                 ( change margin          Businesses
                                                                                                                                                                                                             mix)
                        Leverage Anchor
                            Clients


                                            130 Acquisitions since 2000 (Software); 28 in Business Analytics.
        Acquisitions      Partnerships
                                            2011: TRIRIGA, i2, Algorithmics, Q1 Labs, Curam
                                                                                                                                                   Shared services
                          (Bharti Airtel)                                                                                                                                                            •Software 50%           • PC Business
          (20Bn)                            2010: Netezza, Sterling Commerce, Lombardi, Intelliden, Initiate Systems, Cast Iron Systems
                                            BigFix, Coremetrics, Datacap, Unica, PSS Systems, OpenPages, Clarity Systems                                                                             •Services 36%           • HDD
                                                                                                                                                 End-to-end process




                                                                                                                                                                         Become premier Global
                                                                                                                                                   transformation                                    •HW 13%                 •Printers




                                                                                                                                                                          Integrated Enterprise
         Broaden
                                             Grow smarter              •Integrate BAO                     • Bus Process as a
         Portfolio                           planet offering            into other                          Service
       (Buy vs Build)                                                   Offerings                         • Platform as a                       Accelerate integration                               Focus on Open
                                                                                                            Service                               for IBM’s global                                   Technology and
                                                                       •Introduce BAO
                                                                                                          • Infrastructure as a                      operations                                        high value
                                                                        Offerings per
                                                                                                            Service                                                                                     Solutions
                                                                        Industry
                                                                                                          • Software as a
                                                                                                            Service                                Sales Excecution
                                                                Big Data                                                                               Initiative

       Cross Industry
                            Expertise
        Knowledge                                                      Build a talent pool of
                              Hubs                                                                                                              Focus Resources on
        Distribution      (China, Brasil,                                  9000 expert
                                                                                                                                                Client oriented Work
                             Africa)                                       Consultants


                                                                                          GOAL               STRATEGY                     TACTIC
IBM
       Strategy Map
                                                                                                        2015 Roadmap => $20EPS

                                                Revenue growth (focus        Making Customers:             Provide long term                Lead the Industry through
                                                                                                                                                    Innovation/                            Employer of Choice
---------------------------------------------------------------------------------------------------
                                                  on SW) providing
                                                  Business Value to
                                                     Customers
                                                                             • More Innovative
                                                                             • More Competitive
                                                                             • More Effective:
                                                                                                         value to Shareholders
                                                                                                                 (70Bn)                        Ability to adapt to a
                                                                                                                                             changing Environment
                                                                                                                                                                                           (Leverage Human
                                                                                                                                                                                                Capital)




                                                                                                                                                               Integrate aquired                Predict             Recruitment +
           Corporate                                 Deliver Integration             Smarter                     Enter                  R&D                  employees faster (stay            attrition in          Retention
             Social                                  and Innovation to                Planet                     Public                Strategy                    or leave)                   key roles             in Growth
          Responsibility                                   Clients                (10Bn by 2015)               Social Area             (6.3Bn)                                                                        Markets
            Agenda




                                                                                                                  Launch            Breakthrough
                                                                                  Focus on high                  IBM Docs          Technologies to
               www.ibm.com/ibm/responsibility




                                                         Shift from point                                                              capture
                                                          solutions to            growth Industries:                                                                    Anticipate & Plan Resource & Skills Requirements
                                                                                                                                   Transformational
                                                      integrated solutions        •Health care                                                                                    to support 4 Growth Initiatives
                                                                                                                                     Opportunties
                                                                                  •Retail                                             (Watson)

                                                                                  • FSS
                                                        Expand IBM’s                                                                                                            Talent & Leadership Development
                                                      capabilities to help        •Telecomms                                       Cloud: Security &                                 (Ranked #1 by Fortune)
                                                      customers manage                                                              Privacy Focus
                                                              risk                 Expand Smarter
                                                                                    Cities Initiative
                                                                                                                                     Maintain US
                                                      Help Clients to turn                                                         Patent Leadership
                                                       Information into            Expand Smarter
                                                            Insight                  Commerce
                                                        (BAO Agenda)                 Capabilities                                    IP Protection
                                                                                                                                   (Revenue Source)


                                                        Global Services
                                                       Integration Hubs




                                                                                                           GOAL             STRATEGY         TACTIC
How much do you KNOW about your own,
IBMs and customers strategies!

No guessing !
How can knowing the strategy map help you ?


1. To be able to explain it where needed
       (It is your biggest part of a value proposition)

2. It helps you understand your own true goals & needs
       (It shows how much they mean to you)

3. It reminds you of the bigger part you play in building a
   smarter business/company (which is much more than
   closing any deal)




                                                              16
Call to Action….

1. Analyze
2. Understand
3. Build
4. Use                Area on the Map Scale 1 – 5                           Skills ?
                      (Goal, Strategy, Tactic)   1 = Room for improvement
5. Grow                                          5 = Excellent




                                                                                       17
IBM Business Partner Kickoff 2013


Creating the IBM strategy map


Jan Simonsen,
Business Unit Executive
SWG Channel Nordic

IBM BP Kickoff 2013 - Strategy Map

  • 1.
    IBM Business PartnerKickoff 2013 Creating the IBM strategy map Jan Simonsen, Business Unit Executive SWG Channel Nordic 1
  • 2.
    All men cansee the tactics I use to conquer, but what none of them can see is “the strategy out of which victory is evolved.” Sun Tzu However beautiful the strategy, you should occasionally look at the results. Winston Churchill 2
  • 3.
    Learning How can thefollowing benefit you as Business Partner? 1. Understanding a strategy map 2. Knowing the IBM Strategy 3. Understanding your own strategy and the market 3
  • 4.
    Why strategy (forus)? To understand why you do what you do (and what you need to change to stay on course) To understand (and show that you understand) your own and the customer plans and needs 4
  • 5.
    What do yourpartners and customers really want ? “SELLING WONT HELP – BUT HELPING WILL SELL" 5
  • 6.
    How much doyou KNOW about your own, IBMs and customers strategies! No guessing ! 6
  • 7.
    2 bn pipe 800m valid 7 7
  • 8.
    The Strategy Map- Keeps it simple A way to visualize the goals strategies and tactics which a company has in place to perform as promised to its shareholders, employees and community. 8
  • 9.
    Grundfos Strategy Map Longevity – Grundfos a company Built to Last Financial Health Plan for Growth People Strategy Technical R&D Sustainability --------------------------------------------------------------------------------------------------- Debt free = invest ready Leveraging Human Capital Innovation & Invention Existing Markets Emerging New Products & Services First of a kind products Markets Grow Services business Plan for future Innovation intent – by Turnkey projects – More intelligence in growth; 2025 a third of the pump stations products Grow services to be turnover generated by *Global perspective, 30% of total revenue by products & services Security , Intellectual *Production outside E-learning 2015 which extends beyond Property (IP) EU, • Expand the business the core business * Structural adaption Pro-active services -> • Pumps that add value Focus on innovation New products will professional end-users Take the lead by generate 1/3 of the •Instrumention of opening new Improve cross selling Constant improvement revenue pumps and a need to markets and create of product development collect the data from business based on •Solutions incl services increase with 10% Increase market share pumps the need for in water utility •Projects •Act and provide sustainable segment Re-inforcement of solutions •Products services on the Change to more research and collected data Establish strong technology Maintain by Customer service oriented Grow through solutions position in China development ensuring Loyalty business not yet developed production capacity close to the market Support for Growth initiatives Customer Insight; get •Acquisitions Competence center close Partner Relationship closer to the end-user to Copenhagen with as part of value chain •Growth through new clusters in Russia and business areas France to capture market •Staff growth 18 000 share – 75 000 GOAL STRATEGY TACTIC
  • 10.
    Grundfos Strategy Map Longevity – Grundfos a company Built to Last Plan for Growth Financial Health Technical R&D People Strategy Sustainability --------------------------------------------------------------------------------------------------- Debt free = invest ready Innovation & Invention Leveraging Human Capital Invest in latest Control Costs Invest in latest IT Global Working CSR Develop technology to support technology culture organizational Innovation culture to foster = transformation and promote Enabler Develop the Green Focus sustainability and organization to environmental Invest financial surplus Operational Best in Class IT become more CO2 emission responsibility in new sustainable Excellence & Internal environmental must never technologies, products progress efficiency responsible exceed 124 000 Supporting Platforms and solutions tons per year Support Constantly improve Become a unified Act on climate awareness in the Invest in New Variable vs fixed cost company by changes performance of the world – about technologies & product organisation climate changes Benchmarking • Become truly solutions Government and the need for internally & externally Global Work Smarter = regulations sustainable Investments in R&D • Consultning Smarter Worker Communication energy 2011 – 1 BDKR Approach, consumption and Capital investments to •Across people/regiion Logistic RFID / • Attracting people production double in 2011-< 1,5 companies BDKR Tracking / Smarter Keep mindset with Publish the • Ease of comm tools 75 000 employees Grundfos view to Employeer of choice 2025 (EOC) influence politically & in By on-boarding / off Attract right people community Supremely optimized boarding of employees Inter cultural with many Sustain market nationalities involved leader position SCM optimization Focus on core skills Grundfos Brand as EOC Stronger Procurement 24x7 Education -> Focus on Involvment ”E”cademy; internal customer needs & Secure satisfied and & external Satisfaction – motivated employees Business Process loyalty score 82 Manufacturing / out of 100 Optimization Employee Satisfaction & motivation •Need to increase satisfaction -> decline from 2007-2010 •Talent Development GOAL STRATEGY TACTIC
  • 11.
    IBM 2015 Whatdo you know about the IBM 2015 strategy? What are the 6 levers that will drive $10 EPS to $20 EPS 11
  • 12.
    6 Levers drivingUSD 10EPS Growth 12
  • 13.
    IBM Strategy Map 2015 Roadmap => $20EPS Provide long term Lead the Industry Employer of Revenue growth (focus Making Customers: Value to Choice --------------------------------------------------------------------------------------------------- on SW) providing Business Value to • More Innovative • More Competitive • More Effective: Shareholders (70Bn) through Innovation/ Ability to adapt to a changing Environment (Leverage Human Capital) Customers Growth Growth Smarter World leader in Cloud Base Growth Initiatives Markets (30% Planet Business (7Bn by 2015) Growth Initiatives (20Bn by of GEO Rev (10Bn by 2015) Analytics 2015) by 2015) (16Bn by 2015) Expand, Share Repurchase Operating, Pre- (50Bn in stock 15 Smarter Cities BAO Industry Solutions Tax & Net purchases) & 20Bn in Growth Security Margins Dividend Smarter Commerce Predictive Analytics Plays Information Mgmt Doubling Branch Strengthen Business Locations Partner Eco System Organic (100 beyond Large (27000 BPs Cities & BRIC) certified) Operating Leverage Broaden base Skills and R&D Improve Enterprise Shift to higher Divest Capabilities margin Business Commodity Productivity (8Bn by 2015) ( change margin Businesses mix) Leverage Anchor Clients 130 Acquisitions since 2000 (Software); 28 in Business Analytics. Acquisitions Partnerships 2011: TRIRIGA, i2, Algorithmics, Q1 Labs, Curam Shared services (Bharti Airtel) •Software 50% • PC Business (20Bn) 2010: Netezza, Sterling Commerce, Lombardi, Intelliden, Initiate Systems, Cast Iron Systems BigFix, Coremetrics, Datacap, Unica, PSS Systems, OpenPages, Clarity Systems •Services 36% • HDD End-to-end process Become premier Global transformation •HW 13% •Printers Integrated Enterprise Broaden Grow smarter •Integrate BAO • Bus Process as a Portfolio planet offering into other Service (Buy vs Build) Offerings • Platform as a Accelerate integration Focus on Open Service for IBM’s global Technology and •Introduce BAO • Infrastructure as a operations high value Offerings per Service Solutions Industry • Software as a Service Sales Excecution Big Data Initiative Cross Industry Expertise Knowledge Build a talent pool of Hubs Focus Resources on Distribution (China, Brasil, 9000 expert Client oriented Work Africa) Consultants GOAL STRATEGY TACTIC
  • 14.
    IBM Strategy Map 2015 Roadmap => $20EPS Revenue growth (focus Making Customers: Provide long term Lead the Industry through Innovation/ Employer of Choice --------------------------------------------------------------------------------------------------- on SW) providing Business Value to Customers • More Innovative • More Competitive • More Effective: value to Shareholders (70Bn) Ability to adapt to a changing Environment (Leverage Human Capital) Integrate aquired Predict Recruitment + Corporate Deliver Integration Smarter Enter R&D employees faster (stay attrition in Retention Social and Innovation to Planet Public Strategy or leave) key roles in Growth Responsibility Clients (10Bn by 2015) Social Area (6.3Bn) Markets Agenda Launch Breakthrough Focus on high IBM Docs Technologies to www.ibm.com/ibm/responsibility Shift from point capture solutions to growth Industries: Anticipate & Plan Resource & Skills Requirements Transformational integrated solutions •Health care to support 4 Growth Initiatives Opportunties •Retail (Watson) • FSS Expand IBM’s Talent & Leadership Development capabilities to help •Telecomms Cloud: Security & (Ranked #1 by Fortune) customers manage Privacy Focus risk Expand Smarter Cities Initiative Maintain US Help Clients to turn Patent Leadership Information into Expand Smarter Insight Commerce (BAO Agenda) Capabilities IP Protection (Revenue Source) Global Services Integration Hubs GOAL STRATEGY TACTIC
  • 15.
    How much doyou KNOW about your own, IBMs and customers strategies! No guessing !
  • 16.
    How can knowingthe strategy map help you ? 1. To be able to explain it where needed (It is your biggest part of a value proposition) 2. It helps you understand your own true goals & needs (It shows how much they mean to you) 3. It reminds you of the bigger part you play in building a smarter business/company (which is much more than closing any deal) 16
  • 17.
    Call to Action…. 1.Analyze 2. Understand 3. Build 4. Use Area on the Map Scale 1 – 5 Skills ? (Goal, Strategy, Tactic) 1 = Room for improvement 5. Grow 5 = Excellent 17
  • 18.
    IBM Business PartnerKickoff 2013 Creating the IBM strategy map Jan Simonsen, Business Unit Executive SWG Channel Nordic