Innovation Programs
Making innovation possible for
every IBM’er

September 29, 2010
Marcus Evans conference on Process Innovation
Philadelphia, PA




                                                © 2010 IBM Corporation
Agenda for today




2                  © 2010 IBM Corporation
CIO Lab




3         © 2010 IBM Corporation
“Innovation that matters” to our clients and the world


    Innovation is a societal –
    not a technological –
    phenomenon, that arises
    from the intersection of
    invention and insight.




     Sam Palmisano, CEO
     IBM Corporation


4        Chart courtesy of David B. Lection              © 2010 IBM Corporation
                                                                                  4
Innovation lifecycle at IBM
                 Identify      Brainstorm,      Incubate      Validate     Implement,
                    the        share ideas         and       and iterate      go to
                 challenge                     collaborate                   market
I N S I D E




                IBM Lines of                                                 Internal
                  Business                                                 Stakeholders

                                 Sametime 3D




                                                                               Clients
O U T S I D E




                  GTO, GIO,
                     IBV                                                      Partners
                   reports
 5                                                                          © 2010 IBM Corporation
Brainstorm, share ideas, incubate and collaborate

Innovation Vision



      Make every IBM’er believe that
         they can be an innovator




6                                                   © 2010 IBM Corporation
Brainstorm, share ideas, incubate and collaborate

A culture of innovation




              Strong Executive and                  Communication &
              Management Support                     Recognition of
                                                       Successes




   Executive Focus on                                    Supporting Tools
                                                          and Processes
“Innovation That Matters”
7                                                                      © 2010 IBM Corporation
Brainstorm, share ideas, incubate and collaborate

Innovation “Hubs”
                                                     A gathering place


         An approach


                                                    An opportunity

                                                             You

                                                                 t u ni t y
                                                          O ppor
                                                                  …
                                                          C alled
8                                                                      © 2010 IBM Corporation
Brainstorm, share ideas, incubate and collaborate

    Idea management

                                  “Tops Down” direction




                             “Bottoms up” crowd sourcing

9                                                          © 2010 IBM Corporation
Brainstorm, share ideas, incubate and collaborate

“Innovation That Matters” + “Innovation Hubs” = Increased
Success
                                                                                               Ireland 650+ >170
                Well executed                                                                         wins
                 “Innovation                                            Fishkill: 700+ >75
               Challenges” drive                                               wins
                                                                                                    Germany: 950+, >10
            higher adoption rates.                                                                        wins

     100%

     80%
                                                                           Mexico: 110+, >45       India: 4500+, >30
                                                                                wins                      wins
     60%                     27%
     40%                                         9%
             16%                                               16%
     20%

      0%
                 1              2                3              4
            Peer review   Accepted by Catalyst       Adopted   Closed


            All ideas adoption averages 4%



10                                                                                                            © 2010 IBM Corporation
Brainstorm, share ideas, incubate and collaborate

Idea management: Tools




11                                                  © 2010 IBM Corporation
Brainstorm, share ideas, incubate and collaborate

Innovation Hub Community: A place for education,
discussion, information sharing and general communications




12                                                  © 2010 IBM Corporation
Brainstorm, share
How will we get there?   ideas, incubate and collaborate

       Remote collaboration and web 2.0 tools




  13                                                       © 2010 IBM Corporation
Validate and iterate

Don’t worry. TAP is here to help.




hosting + awareness + discovery + feedback

                                    http://www.sxc.hu/photo/492545


14                                    © 2010 IBM Corporation
Validate and iterate

  Where innovators innovate…


                               We’ve got
    Featured                    Stats!
   Innovations



Carousel-style
access to TAP
  innovations                  People like
    by topic                    you use…



                                  Rate
                                this tool!
     People who
   have tried this
    Innovation…
  15                           © 2010 IBM Corporation
Validate and iterate

     CIO Innovation Fund

Encourage innovation while bringing value to
            our clients and our organization

     Selection Criteria:
       Is it innovative?
       Does it benefit our
       organization or our
       clients?
       Will it have an impact
       on/value to the business?
       How risky/complex is it?

16                                             © 2010 IBM Corporation
Implement, go to market

     Communications




17                        © 2010 IBM Corporation
Innovation Portfolio Management


                                      “Are these the
     “Are we focused on               right priorities
      the right areas?”                   for the
                                      organization?”



                   “How do we know
                   when we are done
                     innovating?”



18                                               © 2010 IBM Corporation
CIO Lab Missionand Strategic Priorities




      Innovate                      We discover,                      Demonstrate




                                                         TRANSFORM
                                      create and
to accelerate CIO                                                    what “the future of
                                 incubate emerging
    initiatives                                                         work” can be
                         RUN
                                technology solutions
                               and nurture innovation,
                                    to accelerate
                                                                         Transform
                                        IBM’s
                                    transformation
                                                                           Innovation
                                                                          Programs to
        Develop                                                           support the
 alternate application                                                      Smarter
     management                                                            Enterprise
      paradigms
 19                                                                           © 2010 IBM Corporation
CIO Organization




20                 © 2010 IBM Corporation
Project reviews




21                © 2010 IBM Corporation
Checkpoint process


 CONCEPT
                     EARLY
                     PROTOTYPE
Capture learnings
                                           PILOT
                                                            POST
                    Capture learnings
                                                            PILOT
                                        Capture learnings




 22                                                             © 2010 IBM Corporation
Questions?




             Karen Keeter
             Innovation Strategist, IBM CIO Office
             “Innovation is a team sport”
             Email: kkeeter@us.ibm.com
23                                                   © 2010 IBM Corporation
Backup additional charts


 More information on some of the things I only touched on
 briefly…




24                                                 © 2010 IBM Corporation
Identify the challenge

Key learning from CIO study on innovation (2006)


        Business model
       innovation                      http://ibm.com/iibv

       matters                         products

        External                        services
       collaboration is
                                 business processes
       indispensable
                                  business models
        Innovation must
       be orchestrated         management and culture

       from the top               policy and society
                                     IBM Global CEO Study 2006
25                                   750 CEO’s interviewed       © 2010 IBM Corporation
Identify the challenge

IBM Academy of Technology

     Advance the
     understanding
     of key technical
     areas,                                Architecture Boards
                            Academy
     Improve                Affiliates
     communications
     in and
     development of
                                                             Communities of
     IBM's global
     technical                                                  Practice
     community, and      IBM Research
     Engage clients                          Professions
     in technical
     pursuits of
     common value
                                         www.ibm.com/ibm/academy
26                                                                  © 2010 IBM Corporation
AlphaWorks – Speeding IBM Emerging Technologies to the outside early-
adopter community



     Promising software
     programs in research not yet
     commercialized.
     Outside companies and
     developers contribute
     valuable ideas about
     bringing them to market.
     First-cut versions of research
     technology available for free
     trial attracting thousands of
     early adopters, innovators,
     and entrepreneurs to site.
     40% of technologies on the
     site graduate into IBM
     products or industry
     standards.
                            http://www.alphaworks.ibm.com/

27                                                            © 2010 IBM Corporation
“Jamming” – Worldwide collaboration to identify pragmatic ideas for IBM


                 What are Jams?
     •Global on-line brainstorming sessions open
     to all employees

        −Hosted on w3 for focused period of
         time – usually 72 hours

        −Designed to accelerate culture change,
         engage employees directly in important
         business decisions and generate a
         wealth of actionable ideas

        −Can be internal, external or both.
         Participants post ideas and best
         practices, comment on and refine
         others, rate best suggestions for
         implementation

        −Examples : WorldJam, ManagerJam,
         ConsultantJam, ValuesJam, WorldJam
         2004, InnovationJam, Security Jam,
         Smarter Supply Chain, Global Pulse
         2010…
                                   https://www.collaborationjam.com/
28                                                                     © 2010 IBM Corporation
Sensing and Visioning Programs (GTO, GIO and IBV)
             Global Technology Outlook (GTO)
             – Highlights emerging software, hardware, and services technology trends that are
               expected to significantly impact the IT sector in the next 3-7 years
             – Influences technical strategy ensuring company is focused on major opportunities for
               new growth
             – Identifies technologies that may be disruptive to an existing business, have the potential
               to create new opportunity, and can provide new business value to our customers


             Global Innovation Outlook (GIO) 2005-2009- http://www.ibm.com/ibm/gio
             – Through a global, multi-disciplinary, collaborative process captures candid
               conversations about important issues of our day
             – Rather than predicting the future, the GIO searches for the sparks that will ignite
               meaningful change for individuals, businesses and the world
             – 100+ IBM researchers, consultants and subject matter experts; 109 ecosystem
               participants
             Institute for Business Value (IBV) –
           http://www-935.ibm.com/services/us/gbs/bus/html/bcs_whatwethink.html
             – The IBM Institute for Business Value provides strategic insights and recommendations
               that address critical business challenges and capitalize on new opportunities. Our
               research is used by senior executives to help them anticipate changes in their industries
               and prioritize strategic and operational alternatives for action
             – Well over 100 studies are currently available across many industries and areas of
               functional expertise
29           – Our recently published Banking 2015 study explores key megatrends influencing2010 IBM Corporation
                                                                                           © the
               future of banking and assesses implications for existing players
Brainstorm, share ideas, incubate and collaborate

Collaborative Innovation




     http://www-03.ibm.com/innovation/discovery/index.html




                                   https://www.collaborationjam.com/


30                                                                     © 2010 IBM Corporation
Biztech




31        © 2010 IBM Corporation
ExtremeBlue




32
              www.ibm.com/extremeblue   © 2010 IBM Corporation
Innovation Challenges

     Used as a means of focusing idea generation

     Communicated to target audiences

     Executive assigns individuals as Catalysts, to follow up on ideas generated by the challenge

     Key factors in the effectiveness of a challenge:
         o Balanced scope of challenge
         o Degree of publicity and visibility
         o Level of commitment from sponsoring organization, to review and act on submissions




33                                                                                              © 2010 IBM Corporation
“Sametime 3D”- A new way to collaborate
 Business Value:
 Supports enhanced collaboration
     activities using virtual worlds,
     integrated with Lotus Sametime
     8.01(or later)

 Business Venues:
       Boardroom
       Collaboration space
       Theater

 Platform features:
       Reusable meeting spaces
       Presentation and video viewing
       In-world tools to support virtual
       meeting activities
       Optional spatial voice
       Access control via Enterprise
       directory
       We based administrator tools
      http://www-03.ibm.com/press/us/en/pressrelease/27831.wss
34                                                               © 2010 IBM Corporation

Innovation programs overview innov event sept 2010 v5.1

  • 1.
    Innovation Programs Making innovationpossible for every IBM’er September 29, 2010 Marcus Evans conference on Process Innovation Philadelphia, PA © 2010 IBM Corporation
  • 2.
    Agenda for today 2 © 2010 IBM Corporation
  • 3.
    CIO Lab 3 © 2010 IBM Corporation
  • 4.
    “Innovation that matters”to our clients and the world Innovation is a societal – not a technological – phenomenon, that arises from the intersection of invention and insight. Sam Palmisano, CEO IBM Corporation 4 Chart courtesy of David B. Lection © 2010 IBM Corporation 4
  • 5.
    Innovation lifecycle atIBM Identify Brainstorm, Incubate Validate Implement, the share ideas and and iterate go to challenge collaborate market I N S I D E IBM Lines of Internal Business Stakeholders Sametime 3D Clients O U T S I D E GTO, GIO, IBV Partners reports 5 © 2010 IBM Corporation
  • 6.
    Brainstorm, share ideas,incubate and collaborate Innovation Vision Make every IBM’er believe that they can be an innovator 6 © 2010 IBM Corporation
  • 7.
    Brainstorm, share ideas,incubate and collaborate A culture of innovation Strong Executive and Communication & Management Support Recognition of Successes Executive Focus on Supporting Tools and Processes “Innovation That Matters” 7 © 2010 IBM Corporation
  • 8.
    Brainstorm, share ideas,incubate and collaborate Innovation “Hubs” A gathering place An approach An opportunity You t u ni t y O ppor … C alled 8 © 2010 IBM Corporation
  • 9.
    Brainstorm, share ideas,incubate and collaborate Idea management “Tops Down” direction “Bottoms up” crowd sourcing 9 © 2010 IBM Corporation
  • 10.
    Brainstorm, share ideas,incubate and collaborate “Innovation That Matters” + “Innovation Hubs” = Increased Success Ireland 650+ >170 Well executed wins “Innovation Fishkill: 700+ >75 Challenges” drive wins Germany: 950+, >10 higher adoption rates. wins 100% 80% Mexico: 110+, >45 India: 4500+, >30 wins wins 60% 27% 40% 9% 16% 16% 20% 0% 1 2 3 4 Peer review Accepted by Catalyst Adopted Closed All ideas adoption averages 4% 10 © 2010 IBM Corporation
  • 11.
    Brainstorm, share ideas,incubate and collaborate Idea management: Tools 11 © 2010 IBM Corporation
  • 12.
    Brainstorm, share ideas,incubate and collaborate Innovation Hub Community: A place for education, discussion, information sharing and general communications 12 © 2010 IBM Corporation
  • 13.
    Brainstorm, share How willwe get there? ideas, incubate and collaborate Remote collaboration and web 2.0 tools 13 © 2010 IBM Corporation
  • 14.
    Validate and iterate Don’tworry. TAP is here to help. hosting + awareness + discovery + feedback http://www.sxc.hu/photo/492545 14 © 2010 IBM Corporation
  • 15.
    Validate and iterate Where innovators innovate… We’ve got Featured Stats! Innovations Carousel-style access to TAP innovations People like by topic you use… Rate this tool! People who have tried this Innovation… 15 © 2010 IBM Corporation
  • 16.
    Validate and iterate CIO Innovation Fund Encourage innovation while bringing value to our clients and our organization Selection Criteria: Is it innovative? Does it benefit our organization or our clients? Will it have an impact on/value to the business? How risky/complex is it? 16 © 2010 IBM Corporation
  • 17.
    Implement, go tomarket Communications 17 © 2010 IBM Corporation
  • 18.
    Innovation Portfolio Management “Are these the “Are we focused on right priorities the right areas?” for the organization?” “How do we know when we are done innovating?” 18 © 2010 IBM Corporation
  • 19.
    CIO Lab MissionandStrategic Priorities Innovate We discover, Demonstrate TRANSFORM create and to accelerate CIO what “the future of incubate emerging initiatives work” can be RUN technology solutions and nurture innovation, to accelerate Transform IBM’s transformation Innovation Programs to Develop support the alternate application Smarter management Enterprise paradigms 19 © 2010 IBM Corporation
  • 20.
    CIO Organization 20 © 2010 IBM Corporation
  • 21.
    Project reviews 21 © 2010 IBM Corporation
  • 22.
    Checkpoint process CONCEPT EARLY PROTOTYPE Capture learnings PILOT POST Capture learnings PILOT Capture learnings 22 © 2010 IBM Corporation
  • 23.
    Questions? Karen Keeter Innovation Strategist, IBM CIO Office “Innovation is a team sport” Email: kkeeter@us.ibm.com 23 © 2010 IBM Corporation
  • 24.
    Backup additional charts More information on some of the things I only touched on briefly… 24 © 2010 IBM Corporation
  • 25.
    Identify the challenge Keylearning from CIO study on innovation (2006) Business model innovation http://ibm.com/iibv matters products External services collaboration is business processes indispensable business models Innovation must be orchestrated management and culture from the top policy and society IBM Global CEO Study 2006 25 750 CEO’s interviewed © 2010 IBM Corporation
  • 26.
    Identify the challenge IBMAcademy of Technology Advance the understanding of key technical areas, Architecture Boards Academy Improve Affiliates communications in and development of Communities of IBM's global technical Practice community, and IBM Research Engage clients Professions in technical pursuits of common value www.ibm.com/ibm/academy 26 © 2010 IBM Corporation
  • 27.
    AlphaWorks – SpeedingIBM Emerging Technologies to the outside early- adopter community Promising software programs in research not yet commercialized. Outside companies and developers contribute valuable ideas about bringing them to market. First-cut versions of research technology available for free trial attracting thousands of early adopters, innovators, and entrepreneurs to site. 40% of technologies on the site graduate into IBM products or industry standards. http://www.alphaworks.ibm.com/ 27 © 2010 IBM Corporation
  • 28.
    “Jamming” – Worldwidecollaboration to identify pragmatic ideas for IBM What are Jams? •Global on-line brainstorming sessions open to all employees −Hosted on w3 for focused period of time – usually 72 hours −Designed to accelerate culture change, engage employees directly in important business decisions and generate a wealth of actionable ideas −Can be internal, external or both. Participants post ideas and best practices, comment on and refine others, rate best suggestions for implementation −Examples : WorldJam, ManagerJam, ConsultantJam, ValuesJam, WorldJam 2004, InnovationJam, Security Jam, Smarter Supply Chain, Global Pulse 2010… https://www.collaborationjam.com/ 28 © 2010 IBM Corporation
  • 29.
    Sensing and VisioningPrograms (GTO, GIO and IBV) Global Technology Outlook (GTO) – Highlights emerging software, hardware, and services technology trends that are expected to significantly impact the IT sector in the next 3-7 years – Influences technical strategy ensuring company is focused on major opportunities for new growth – Identifies technologies that may be disruptive to an existing business, have the potential to create new opportunity, and can provide new business value to our customers Global Innovation Outlook (GIO) 2005-2009- http://www.ibm.com/ibm/gio – Through a global, multi-disciplinary, collaborative process captures candid conversations about important issues of our day – Rather than predicting the future, the GIO searches for the sparks that will ignite meaningful change for individuals, businesses and the world – 100+ IBM researchers, consultants and subject matter experts; 109 ecosystem participants Institute for Business Value (IBV) – http://www-935.ibm.com/services/us/gbs/bus/html/bcs_whatwethink.html – The IBM Institute for Business Value provides strategic insights and recommendations that address critical business challenges and capitalize on new opportunities. Our research is used by senior executives to help them anticipate changes in their industries and prioritize strategic and operational alternatives for action – Well over 100 studies are currently available across many industries and areas of functional expertise 29 – Our recently published Banking 2015 study explores key megatrends influencing2010 IBM Corporation © the future of banking and assesses implications for existing players
  • 30.
    Brainstorm, share ideas,incubate and collaborate Collaborative Innovation http://www-03.ibm.com/innovation/discovery/index.html https://www.collaborationjam.com/ 30 © 2010 IBM Corporation
  • 31.
    Biztech 31 © 2010 IBM Corporation
  • 32.
    ExtremeBlue 32 www.ibm.com/extremeblue © 2010 IBM Corporation
  • 33.
    Innovation Challenges Used as a means of focusing idea generation Communicated to target audiences Executive assigns individuals as Catalysts, to follow up on ideas generated by the challenge Key factors in the effectiveness of a challenge: o Balanced scope of challenge o Degree of publicity and visibility o Level of commitment from sponsoring organization, to review and act on submissions 33 © 2010 IBM Corporation
  • 34.
    “Sametime 3D”- Anew way to collaborate Business Value: Supports enhanced collaboration activities using virtual worlds, integrated with Lotus Sametime 8.01(or later) Business Venues: Boardroom Collaboration space Theater Platform features: Reusable meeting spaces Presentation and video viewing In-world tools to support virtual meeting activities Optional spatial voice Access control via Enterprise directory We based administrator tools http://www-03.ibm.com/press/us/en/pressrelease/27831.wss 34 © 2010 IBM Corporation