IBM embraces open and collaborative innovation to stay ahead of changing market needs. It defines innovation as the intersection of invention and insight that creates value. IBM has over 500,000 employees working in 190 countries and has acquired over 100 companies since 2003 to complement its portfolio. It leverages its global workforce and partners through open innovation models like jams and hackathons. Social software is heavily used within IBM to connect employees, share knowledge, and generate new ideas.

1. Innovation@IBM
Open
innova*on
in
IBM
Anders
Quitzau
Innova1onschef,
IBM
© 2013 IBM Corporation

2. Innovation@IBM
What is innovation?
2 © 2013 IBM Corporation

3. Innovation@IBM
IBM’s definition of innovation
§ Intersection of invention and insight
§ Creates value
§ Holistic view “Innovation is a societal -- not a
– Business model technological -- phenomenon,
Sam Palmisano, CEO, IBM Corporation
– Products & services
– Operations
© 2013 IBM Corporation

4. Innovation@IBM
IBM has a workforce of over 500,000
of which almost 50% are mobile
Major Employee Sites
Customer Fulfilment
Manufacturing
Employee Service Centers
IBM Research Centers
IBM location
Mobile employees
• 190 countries
• 2,000 locations
• More than 100
acquisitions since
2003
• 50% employees have
< 5 years experience
LC
© 2013 IBM Corporation

5. Innovation@IBM
NEW GENERATION
OLDER WORKERS MID-CAREER WORKERS NEW GENERATION
age 50 + Age 35 – 50 Born after 1980
Generational shifts unleash workforce
growing as % of workforce shrinking as % of
different work styles% of workforce
growing as
WISDOM & INTELLECTUAL AND MIDDLE MANAGERS AND INNOVATION
EMAIL INSTANT MESSAGING SOCIAL NETWORKING
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© 2013 IBM Corporation

6. Innovation@IBM
IBM’s early days....
© 2012 IBM Corporation
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7. Innovation@IBM
Some IBM inventions.....
7 © 2013 IBM Corporation

8. Innovation@IBM
IBM’s Ongoing Transformation Journey
Business Model, Operating Model and Workforce Transformation
Remixed our portfolio toward services, 2010 a record year…
software, and integrated solutions…
§ 8th consecutive year of double-digit EPS growth
Exited commoditized businesses: § Revenue of $99.9B – up 4%
– PCs § Record net income of $14.8B – up 10%
§ Growth markets accounted for 21% of IBM’s total
– Hard disk drives
geographic revenue
– Printing Systems
Strengthened position in:
§ Highlights since 2000 …
– Added $10B in growth market revenue
– Business Consulting
– Tripled SW profits
– Service-Oriented Architecture
– Analytics & cloud computing
– Virtualization
– Open, modular systems
Acquired 116 companies in last 10 years
– to complement and scale our portfolio of
products and offerings
– EPS nearly tripled to almost 15$ in 2011
– $109B in Free Cash Flow
– Returned $107B to shareholders
3 © 2012 IBM Corporation

9. Enabling culture change
Innovation@IBM
We Embrace Collaborative & Open Innovation
Why? What we’ve done
§ Become our clients’ “innovation partner” § Established an innovation agenda
– Address client priorities that spans multiple dimensions:
– Build deeper client relationships
– Product
§ Respond to changing nature of innovation – Services
§ Organizations need each other to be – Business process
successful – Business model
– Pace of innovation outstrips an organization’s
ability to “go it alone” – Management and culture
– Policy and society
§ Changing workforce dynamics
– Globalization § Enabled global collaboration
– “Millennials”
– Culture of collaboration
– Innovation ecosystem
Venture
IT Analysts Capitalists ISVs Business
Partners
Investors Alumni
“We opened up our labs, said to the world, ‘Here are
Regulatory Bodies Universities our crown jewels, have at them’. The Jam -- and
Innovation Ecosystem § Technical
programs like it – are greatly accelerating our
Clients § Business
Community ability to innovate in meaningful ways for business
Employees Leaders
Standards Policy-
Competitors and society.” - Sam Palmisano, IBM CEO
Bodies makers
© 2012 IBM Corporation

10. Innovation@IBM
7 vigtige skridt mod en innovationskultur – og få idéerne frem i lyset
© 2012 IBM Corporation

11. Innovation@IBM
Our philosophy of innovation is: Fail many, but fail cheap
- A new paradigme in innovation enabled by Web 2.0:
Yesterday – as was 1 Today – As is
§ Ideation and Product
Inception from the
Ideas source: expanding source for Ideas source:
Internal innovation Internal, partners and customers
idea idea idea idea
idea § Use Collaborative idea
ideaidea ideaidea idea idea
tools to solicit idea idea idea idea
interactive feedback.
Weeks to months
idea
18 months to 2 years
§ Limited
community to
foster new
innovation
Service Service Service
§ Little user
interaction and
market feedback § “Build it and
Service
§ Service silos
§ Limited reuse
they will 3 2 § Use of exposed
come” § Larger variety of
approach compelling offerings common capabilities
to offer customers to enable rapid
service assembly
Breadth
© 2013 IBM Corporation

12. Innovation@IBM
Idea management models
© 2012 IBM Corporation
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13. Innovation@IBM
Innovation Enablers
§ Permission and alignment
§ Open & transparent business strategy
§ Collaboration tools
§ Communities of adopters
§ Employee awareness & education
§ Social networks
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8
© 2013 IBM Corporation

14. Innovation@IBM
IBM’s innovation portfolio reflects the tremendous creativity and
contributions of many organizations – both within and outside
IBM
Generally
Available
l IBM Industry
Solutions
l IBM Business
Partner Solutions
l Product & Service Offerings l Acquisitions
l VC Backed Firms
(Late Stage)
Maturity of Tech- l IBM / Client Joint Innovation
l CIO-fund
nology/Solution
l Emerging Business Opportunities l AlphaWorks
l IBM Research Services l IBM Institute for Business Value – studies and PoVs
l First Of l Idealabs, Jams l Seed-stage
Startups
A Kind
l IBM Applied Research Projects
l Academy of Technology
l TAP / BizTech l University Programs
“Bleeding l Extreme Blue
l Ideas l Startups / Entrepreneurs
Edge” l IBM Basic Research Projects
IBM-led Involvement of External-led
Innovation External Partners Innovation
Innovation Management
14 © 2013 IBM Corporation

15. Innovation@IBM
Innovation as a core discipline at IBM
Identity Incubate, Prototype
Mobilize Interest,
Mobilize Interest, Implement, Take
Challenges/Create and Validate
Collaborate
Collaborate to Market
Ideas
INSIDE
IBM Lines of
Business
Internal
Stakeholders
Global
Technology
Outlook
Clients
FOAK
OUTSIDE
Sametime 3D
Partners
IBV reports
© 2012 IBM Corporation

16. Innovation@IBM
© 2013 IBM Corporation

17. Innovation@IBM
IBM Research: Globalization
Dublin§ Smarter Cities
China § Internet of Things
Zurich
Almaden Watson
§ Science Haifa
§ Nanotech India Tokyo
§ Analytics § Semiconductors Materials
§ Storage § Systems § “Big Data” § Industry
Analytics Solutions
§ Nanotech Austin § Software &
§ Security
§ Services
§ Accessibility
Healthcare Services § Mobile
§ Semiconductors
§ Processors Communications
Africa
§ Next Gen Public Sector
§ Water & transportation
Brazil § Human Capacity Development
§ Natural Resources
§ Smarter Devices
§ Human Systems/Events
Australia
§ Natural Resources
§ Disaster management
§ Healthcare/Life Sciences
(60% funding from gov’t)
IBM Research Labs
IBM Research – Openings in 2011
IBM Research – Openings in 2012
17 © 2013 IBM Corporation

18. Innovation@IBM
IBM Research: Collaborative Innovation
China Pangoo
Zurich Tokyo
Almaden Watson Haifa
Austin India
Nairobi
Sao Paolo
IBM Research Lab
Melbourne
Global, Smarter Planet Collaborations
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19. Innovation@IBM
Container Centralen, using advanced secure RFID tags
to solve a business problem and provide opportunity for
new services
Started in 1976, the CC
system was created due
to demand for a Based on an exchange
solution to transport system, leading to
80.000 users across 22 increased efficiency and
flowers and plants countries in Europe, e.g. lower number of
growers, auctions, containers needed
transporters, exporters,
retailers
© 2013 IBM Corporation

20. 20

21. Innovation@IBM
We engage in public/private partnerships, like the EDISON and
ECOGRID projects on Bornholm
§ Total budget: 24 million Euro (EU funding 13 million
Euro)
§ IBM: 171 man months, around 2.2M DKK of servers and
other equipments, IBM SWG products (ILOG, WAS, MQ,
DBMS)
§ Demonstration > 50 % of budget (excl. replication/
deployment)
§ A large scale demonstration of a real-time market place
for distributed energy resources
§ A demonstration of a real power system with more than
50 percent renewable energy
§ To implement ICT systems and innovative market
solutions - offering TSOs additional and more efficient
balancing services
§ To enhance small consumer and local producers to
participate in the power market through real-time
operation, energy storage and savings
§ To make a prototype solution for Europe - offering a
“fast track” option towards market-based Smart Grids in
Europe
21 © 2013 IBM Corporation

22. 22

23. Smarter Cities Solution Domains and Intelligent Operations Center
Water Transportation Public Safety Buildings*
Work order optimization Data Integration Video Surveillance & Analytics Energy Consumption & Optimization
Usage Analytics Traffic Prediction Crime Information Carbon Management
Predictive Maintenance Route optimization Predictive Policing Greenhouse Gas Emissions Tracking
Leak Detection Bus Arrival Prediction Dispatch Asset & Work Management
Flood Management Planning and Simulation Cyber Security Portfolio Management
Smart Metering Road User Charging Fusion Centers Facility Maintenance
Contamination Mgmt Asset Management Border Security Condition Monitoring
Water Security Integrated Fare Mgmt Communications Occupancy Management
Storm water Mgmt Multi-modal Mgmt Emergency Response Utilization Planning
Wastewater Mgmt Revenue Management Non-Emergency Response Space Optimization
Asset Management Fleet Optimization Move Management
Operations Visualization
Analytics Intelligent Operations Center
City-wide Dashboard
Dashboards
Geo spatial mapping
Predictive Data modeling & integration
Systems Cross-Agency Collaboration
Situational Awareness Alerts
Domain Analytics
Modeling & Event & KPI Management
Simulation Incident Management Reports/
Consequence Management Analysis
Event Rules Semantic Models Workflows
City Archives
Alerts KPI’s Directives
Standards Based
Service Bus
Interfaces
Domain Specific Gateway Gateway Gateway Gateway Gateway
Data
Interfaces Integration
Other Feeds:
Weather
Citizens
Public Health
Water Traffic Electric Buildings Financials
Safety
All included in Intelligent Twitter, facebook
Operations Center product etc
…
23 *Tivoli offerings © 2011 IBM Corporation

24. We set our selves Grand Challenges in R&D
© 2011 IBM Corporation
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25. © 2011 IBM Corporation
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26. Innovation@IBM
Social - in everything - collaborative, transparent innovation
© 2012 IBM Corporation
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27. Innovation@IBM
Crowd sourcing with Jamming
IBM's Jams and other Web 2.0 collaborative mediums are opening up tremendous
possibilities for collaborative innovation — ways of working across industries,
disciplines, and national borders.
https://www.collaborationjam.com/
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© 2013 IBM Corporation

28. Innovation@IBM
Idea management goes social – the Innovation Hub model
Engaged business
leaders share their
challenges with the
community
Successful ideas
get communicated
and celebrated
Community leaders review
ideas – implementing
successful ones
Employees respond by
posting ideas
and collaborating
28 © 2013 IBM Corporation

29. Innovation@IBM
Innovation Hubs
24x7 innovation marketplace
§ Localized collaborative innovation
model for directed results
§ Next iteration of ThinkPlace program
§ Integrates IBM Connections social network
with idea sharing
§ Sharing business needs, innovation,
implementation and recognition
§ Estimated impact of idea
programs:
– 45% new revenue opportunities
– 37% time savings improvements
– 18% cost savings improvements
– cultural suggestions
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© 2013 IBM Corporation

30. Innovation@IBM
Technology Adoption Program (TAP) -
30 © 2013 IBM Corporation

31. Innovation@IBM
Innivation Hub: BizTech prototypes deliver proof points
§ Top talent from across the company gain
opportunity to work on innovative projects one “[ThinkPlace Prototyping]
day per week for 6-8 months
provides a stage for people
who have an innovative idea
§ Senior business and technical leaders serve as
and want that idea to be
project mentors
transformed into valuable
§ Projects sponsored by business unit managers business for IBM.”
- Participant
and executives
§ Staffing and project support provided by
ThinkPlace corporate innovation team
§ Measurable results presented at Showcase
event twice annually
© 2013 IBM Corporation

32. Innovation@IBM Social Software is heavily at work in IBM
Profiles
IBM’s internal Profiles hold over 635,000 entries* & serves over 4 million searches
per month. It’s the hub of user requests & all applications authentication for IBM.
Communities
IBM hosts over 85,177 online communities, each with shared resources and discussions.
More than 38,422 are private [restricted] communities.
Blogs
IBM’s blogging platforms host 42,929 blogs, 303,296 entries with 106,736 users and 84,439
tags.
Bookmarks
IBM’s internal social bookmarking system has 1,370,336 total bookmarks with 3,908,271
tags and with 76% of them publicly shared.
Activities
IBM’s internal Activities service contains 259,013 unique activities with 4,169,728 entries
and with 556,429 registered, 'distinct', members.
Files
IBM’s internal social file sharing & storage service contains 581,081 files, shared 1,501,706
times with 338,903 files added to folders [collections].
Wikis
IBM’s internal Connections Wiki platform hosts 672,968 pages viewed 42,993,500 times.
(* employees & contractors)
Data updated: March 1st, 2012
© 2013 IBM Corporation

33. Innovation@IBM
Collaboration in 1000’s of communities ~ Innovation
© 2012 IBM Corporation
33 © 2013 IBM Corporation

34. Innovation@IBM
We often run ‘mini-jams’ using IBM Connections blog-tool to
elicit ideas for innovation workshops with customers
34 © 2013 IBM Corporation

35. Innovation@IBM
Expanding our
Innovation Eco System
- outside the firewall
© 2013 IBM Corporation
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36. Innovation@IBM
IBM and the Venture Capital Community
IBM
Credibility & Revenue
visibility Growth
“Gives” IBM “Gets”
Expertise
Expanded ecosystems
Infrastructure
Strategic insights
GoTo Market activities
Portfolio
Gaps
VC Community addressed
IP Acquisitions
3 © 2013 IBM Corporation

37. Innovation@IBM
Case Study:
The Solution: Advanced power management and Smart Grid solution for
enterprises
Development
•IBM Innovation Center La Gaude
•Cloud enabled
•IBM hardware, software integration
•Enterprise-ready, SAFE approved
•IBM Cognos Analytics on top
Mentoring and Networking
•Technical road with IBM IDR experts in Europe and US
•Business planning with IBM E&U Industry experts
Sales and Marketing
•Marketing material, exhibition in IBM Forum in Kgs. Lyngby and La
Gaude
•On-going joint projects with large customers
•Joint go-to market in Europe, US and Australia
•Part of IBM Smart Grid Solutions portfolio
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© 2013 IBM Corporation

38. Innovation@IBM
Innovation Discovery Client movement through the program
Extreme Blue for Clients
Clients who need an Innovation
introduction to Discovery
FOAK
Innovation at IBM Explore
Curriculum New IBM
Offerings
Strategic Value Creation &
Major
Clients that are ready to Innovation transformation
focus on specific
Innovation
problems and look for Discovery Discovery 360/Collaborative Innov partnerships
innovative opportunities Focus Define
Customize Incubate
Software Business Dev
• Academy Studies
for Clients
• Virtual
Collaboratories Channels for Development
• Project Definition of Cross-Brand Solutions
Workshops
• + others
Existing IBM Offerings
© 2013 IBM Corporation

39. Innovation@IBM
First-Of-A-Kind - Joint Research, Innovation and development
projects with customers, e.g. Government
39 © 2013 IBM Corporation

40. Innovation@IBM
IBM develops the future of shopping with one of the
world’s largest retailers
Comfort Smart
Shopping Check-out
Infrastructure
WLAN Server
Content Bus
RFID
Inventory In-store
Information
Management
40 © 2013 IBM Corporation

41. Innovation@IBM
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.
© 2013 IBM Corporation

42. Innovation@IBM
Social Media Outside the IBM Firewall examples ( incl Alumni)
80+ accounts using “IBM” in the
name
(25% from outside the US) – over 3,000 IBMers on Twitter
200+ IBM channels
39,000+ users, 500+ IBM groups
(65% outside the US)
378,000+ (*including Alumni)
166 communities, 200+
blogs, 5000+ profiles
75,000+
100,000 IBMers
collaborating with 200,000
non-IBMers © 2013 IBM Corporation

43. Anders Quitzau
Innovation Executive
andersq@dk.ibm.com
+45 2880 4705
http://paper.li/Anders_Quitzau
@Anders_Quitzau
Anders Quitzau
AQuitzau
Aquitzau
43